Apartment Complex Insurance: How does it work?


Managing an apartment complex can be a headache, especially when you’re shopping for insurance. Many apartment building owners buy apartment insurance and have no idea what they’re covered for. Most call and ask for a “liability policy” because it’s required and “someone told them they need it.”

How it works

This post will go over a few California apartment insurance basics and how you can take advantage of your policy when something goes wrong.

Most apartment insurance policies come in a business owners package, more commonly known as a BOP. This package usually contains a wide array of coverage from the building to commercial vehicles used in daily apartment operations.

The property portion of your apartment insurance policy is probably the most basic type of coverage and gives protection if something like fire, vandalism, lighting, etc. were to damage your building.

Slipping LiabilityLiability (usually at limits of 1,000,000/2,000,000) adds protection for damage or losses you as the building owner are liable for. A tenant or guest could trip on a pothole, slip on a puddle, or even drown in a pool leaving the owner liable for damages or losses that occurred.

Added protection could include business property coverage for property such as washing machines, tools, expensive supplies etc. This type of coverage is very inexpensive – the last apartment insurance policy I wrote had $10,000 worth of business property coverage at a rate of only $17 dollars! Check your policy now and make sure you have enough business property coverage.

Hired and non-owned auto liability insurance can also be added to your BOP at a minimal expense. This type of coverage extends liability to vehicles your employees or property managers use for the apartment operations. The last apartment building insurance policy I wrote had this coverage with an addition $126 in premium.

Other coverage options include mold protection, terrorism coverage, building ordinance or law, loss of income, and much more. Get in touch with one of our California apartment insurance agents today and we’ll help you find a policy that fits your needs perfectly.

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