Apartment Building Owners Insurance

Apartment building owners are faced with property and liability risks on a daily basis. It is imperative to secure protection from catastrophic events, liability claims, and lost income.

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What Is Apartment Building Owners Insurance?

Apartment owners can be classified as business owners who manage and ensure the smooth functioning of the property rental operations of their building or complex. You are responsible for providing a safe environment for your tenants both while in the apartment and the surrounding area. Apartment building owners will be faced with several property and liability risks daily. It is imperative to secure protection from catastrophic events, liability claims and lost income.


Apartment Building Owners Insurance is a customizable program of the following coverage:

  • General Liability
  • Property Insurance
  • Loss of Rents& Extra Expense
  • Umbrella Insurance
  • Workers Compensation
  • Employee Dishonesty Coverage

The BOP policy includes basic coverage for property, income loss, and general liability but can also include other coverage such as Crime, Employee Dishonesty, Advertising & Personal Injury Liability, and Inland Marine.

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What are the Risks Involved for Apartment Building Owners?

Apartment building owners will need insurance not only from unforeseen events such as wildfire or hurricane catastrophic damage and the ensuing loss of revenue but also for third party liability claims such slip and falls in common areas. Our agent will examine your operations and building characteristics to determine the risks and recommend the suitable policies specific to your situation.

These are the primary risks you might face as an apartment building owner.

  • Catastrophic Damage to Property
  • Injuries to Tenant or Visitor
  • Loss of Rental Income
  • Theft and Vandalism
  • Equipment Breakdown
  • Personal Injury Liability
  • Discrimination Lawsuits
  • Employee Injuries
  • Scenario 1 - A prospective tenant steps on a live wire while taking a tour of the building undergoing renovation.
  • Scenario 2 - A tenant sues you for wrongful eviction as a result of your employee misplacing their rent check.
  • Scenario 3 - A wildfire destroys the entire structure of one of your buildings while the tenants have to relocate, they will not be paying you rent for the next 6 months.
  • Scenario 4 - Your guarded entry gate is broken and while the guard is away from his post an unsavory person enters the complex and attacks a woman while entering her apartment.
  • Scenario 5 - Your employee, making repairs to the community pool’s mechanical equipment is electrocuted and badly injured. 

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Recommended Policies

Business Owner’s Policy (BOP) or Package Policy

A BOP or package policy encompasses general and personal injury liability, property, and business income insurance. Liability coverage includes bodily injury, or property damage liability, as well as a personal injury resulting from libel, vandalism, slander, wrongful eviction, and invasion of privacy. The property coverage in the BOP includes coverage for physical damage to property and equipment from a covered peril and the ensuing lost rental income resulting from damage to your premises.  Whether you are eligible for a BOP or a Commercial Package Policy, both of these are easily customizable to give you the holistic coverage desired.

Workers Compensation

Workers' compensation is typically required in most states, generally depending on the number of employees. Even in the absence of a worker’s compensation policy, the employer will be held liable for all employee injuries occurring on the job and will be expected to pay all statutorily required benefits.

Umbrella Liability Insurance

Umbrella Liability Insurance provides an extra layer of protection over and above limits on your general, auto, or employer’s liability insurance. This type of insurance is the best for those apartment owners with many tenants, swimming pools, exercise centers, clubhouses, and an active community.  An Umbrella or Excess Liability policy provides that extra “cushion” in the event, your underlying policy limits are exhausted.

Utility Bonds

Utility surety bonds are used in place of cash for   deposit amounts typically required by electric, water, and communication providers for new apartment service connection.

Equipment Breakdown Policy

It may be possible to include Equipment Breakdown coverage in your BOP or Package but if not, a standalone policy is also a great option.  For a sudden and accidental breakdown of mechanical equipment that can render a building uninhabitable (the temperature outside is -20 degrees Fahrenheit) when the boiler system providing heat explodes. Not only will this policy pay for the repair of the boiler but also for the damage caused to the building from the explosion, since this peril would be excluded from a standard property policy.

State Licensing and Liability Coverage

Check with your state, county, and city municipalities to find out details of licensing and insurance requirements to operate apartment buildings, rented condos, or dwellings in your community.

Comprehensive Cost

The costs of coverage we offer depend on various factors ranging from the age of the edifice to the layout of the building structure.

Our experienced agents will evaluate your insurance needs based on the following aspects:

  • Age of the structure
  • Construction Type
  • Building Layout (high-rise, garden-style, duplex)
  • Presence of high-tech security and fire system
  • Presence of swimming pool, clubhouse or fitness center
  • Physical Location
  • Age of the roof and mechanical systems like electric and plumbing
  • Tenant Profile (Young singles, elderly, families, low income, etc.)

Who Benefits?

Landlords of individual properties, apartment building owners and even vacation home rental owners will benefit from this type of insurance program.

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