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What is Apartment Building Insurance?

Owning an apartment building can be highly profitable, but this type of business venture comes with a certain amount of risk. Apartment building insurance helps Massachusetts individuals and businesses that own apartment buildings mitigate many of the risks they face.

Apartment building insurance policies are similar to landlord policies, except apartment building policies are generally written for larger buildings. Since a building owner’s risk exposure increases with building size, these policies frequently have higher limits and more robust coverage than landlord policies offer.

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Who in Massachusetts Needs Apartment Complex Insurance?

Most people and businesses in Massachusetts who own an apartment building should have apartment complex insurance policy. Without coverage, building owners are dangerously exposed to risk and may be in violation of requirements they’re expected to meet.

Sometimes, landlords aren’t sure whether an apartment complex or landlord policy is better suited to their needs. In these situations, landlords should speak with an insurance agent who has in-depth knowledge of both kinds of policies. An agent who’s well-versed in this type of insurance will be able to explain the differences between policies and help landlords select the option that’s best suited to their specific situation.

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Apartment Building Insurance MassachusettsDo Apartment Complex Insurance Policies Include Workers Compensation?

Most apartment building owners have employees and therefore, need workers compensation coverage. In Massachusetts, there are only a few situations where a business that has employees isn’t legally required to carry workers compensation.

While many apartment building owners need it, workers compensation usually isn’t included in apartment complex policies. It’s normally purchased as a separate policy, but most insurance agents that are familiar with apartment complex policies can also help with workers compensation insurance. Talk to a Business Specialist!

What Coverages Are Offered by Apartment Complex Insurance?

Apartment complex insurance policies typically offer an array of coverages. Most of the coverages they afford can be separated into property and liability protections.

Property protections generally help protect the assets that an apartment building owner has. These assets may include apartment buildings, land, maintenance equipment, common amenities and other items. Some of the property coverages that many policies make available are:

  • Commercial Property Coverage, which may cover one or more apartment buildings and their surrounding landscaping
  • Commercial Contents Coverage, which may cover moveable equipment kept in an apartment building
  • Boiler and Machinery Coverage, which may cover non-moveable equipment in an apartment building
  • Backup and Sewer Drains Coverage, which may extend protection to damage caused by certain plumbing issues

Apartment Building Insurance Massachusetts

Liability protections normally help protect an apartment building owner themselves. These protections might help pay legal defense fees, judgements and settlements associated with covered liability lawsuits. Commonly available liability coverages include:

  • General Liability Coverage, which may cover claims arising from a variety of common accidents, slander, libel and false advertising
  • Professional Liability Coverage, which may cover claims arising from bad advice that an apartment building owner gave a tenant
  • Hired and Non-Owned Auto Liability Coverage, which may cover claims arising from accidents involving rented or employee vehicles that are used for work
  • Umbrella Liability Coverage, which may extend protection by offer supplemental coverage

In addition to these, apartment building owners may also want rental income coverage. If a tenant’s rent isn’t collected for a covered reason, this might provide compensation for the lost revenue.

(Because insurers offer a variety of coverages and building owners have different insurance needs, the exact coverages and protections included in apartment complex policies can vary.)

How Can Building Owners Get Apartment Building Insurance?

For help insuring an apartment building, Massachusetts building owners should contact an independent insurance agent who specializes in apartment building insurance. An independent agent can show building owners policies from different insurance companies, and an agent who has helped other building owners will be able to help compare different policies.

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