Apartment Complex Insurance from Massachusetts Specialists

Roger Keith & Sons

What is apartment complex insurance? 

Any investment in an apartment building or complex must be substantial, and it’s important to protect such an investment. One way Massachusetts investors can help protect their apartment buildings and investments is by getting apartment complex insurance.

Apartment complex insurance offers tailor-made coverages for apartment properties. Policies may insure buildings, other improvements, equipment, and against liability risks.

What Massachusetts properties is apartment building insurance for?

Apartment building insurance is usually for residential investment properties with 5+ units. Massachusetts landlords with apartment buildings and complexes at least this size probably need insurance. Of course, properties can be much larger and still insured through these policies.

In many cases, insurance is mandatory when apartment properties are financed. Lenders may require certain coverages so that the buildings they underwrite loans for are insured against damage.

For properties with fewer than five units, a different type of landlord insurance policy is usually better suited.

What insurance coverages should apartment building owners look for?

Insuring an apartment building is complex, and it usually requires several coverages. Some important protections to consider are:

• General Liability: Normally insures against common accidents that occur at apartment buildings or elsewhere on apartment properties.
• Professional Liability: Normally insures against errant guidance that employees might give to current or prospective tenants.
• Commercial Umbrella: Normally offers a secondary level of liability protection, providing extra coverage for covered lawsuits that are especially expensive.
• Commercial Property: Normally insures buildings and other improvements on an apartment property.
• Boiler and Machinery: Normally insures major equipment installed in apartment buildings, such as air conditioners, furnaces and hot water heaters.
• Commercial Contents: Normally insures items not permanently installed, such as appliances, decor, and furniture for furnished apartments.
• Backup and Sewer Drains: Normally insures against water damage resulting from plumbing leaks, backups and overflows.

Other coverages, such as commercial auto, employment practices liability, and cyber insurance, are also normally available. A knowledgeable insurance agent can help apartment owners determine whether they should have these or any other protections.

Are earthquakes and floods covered in apartment building insurance? 

Standard apartment building insurance policies typically exclude coverage for both earthquakes and floods. If coverage for these risks is required, it may be obtained through separate policies.

Flood insurance might be available through the National Flood Insurance Program and private marketplace, depending on a property’s location. Earthquake insurance might be obtained through the private marketplace.

Do apartment building policies cover tenants’ belongings?

Apartment building policies are primarily for the building and owner/investor. They normally don’t offer any protections for tenants or their belongings. Tenants should, instead, be encouraged to get their own renters insurance.

How much does insuring an apartment building cost?

The cost of insuring an apartment building is highly dependent, as premiums are based on numerous factors. Some of what impacts cost include:

• Number and size of apartment buildings
• Age and construction of buildings
• Number and type of units in the buildings
• Location, and distance from a fire station
• Any past claims history
• Chosen coverages and limits

To find out how much insuring a particular apartment building will cost, owners should speak with an independent insurance agent. An independent agent can get custom quotes from several insurers that offer apartment building policies.

How can apartment building owners in Massachusetts get apartment complex insurance?

For help insuring apartment buildings located in Massachusetts, contact the independent insurance agents at Roger Keith & Sons. Our agents have helped many landlords insure their properties, and we’ll work closely with you to find apartment complex insurance that’ll protect your properties well.