What types of coverage should apartment owners have?
There are four types of coverage owners of apartment buildings should consider carrying:
1) General Liability: As a property owner, landlords are responsible for maintaining the structural integrity of sidewalks, common areas, pool, workout rooms, parking lots and more. If someone gets hurt on the property, they could hold the apartment complex liable. A General Liability policy will help protect the property owner in the event of lawsuits by covering legal fees.
2) Commercial Property: This protects the structure itself against damages, including structures on the property itself such as sheds, pool buildings, clubhouse, pools, etc. It even includes protection for business personal property stored on the premises that are used in maintenance, like pool and lawn equipment.
3) Business Income: This can be an important coverage for apartment owners in the event they must force tenants to vacate an apartment property for any length of time due to damage that resulted from a covered peril. For instance, if a major leak or flooding were to occur - they may have to temporarily displace tenants, resulting in a significant loss of income. Business income coverage can provide landlords reimbursement for the interruption in business operations.
4) Umbrella: Umbrella coverage can cover your client in the event a loss or claim is too big and exhausts the limits of their current policy. This can keep your client from catastrophic loss.