Owning an apartment complex is an excellent way to bring in income, but it is important to protect yourself and your investment with the right insurance coverage. While there is no single apartment complex insurance policy, there are several types of coverage you should have.
The Most Important Coverage To Have
The right insurance policy will cover property damage and lost rental income as well as provide liability protection. Property damage should cover natural disasters, electrical or gas malfunctions, and fires, but it should also cover damage done by tenants. Lost rental income is important in case you ever have an uninhabitable building dueto mold, termites, or other pests. Finally, liability protection covers medical or legal costs if a tenant or visitor is injured on your property and decides to take you to court.
Additional Coverage Options To Consider
There are other types of insurance to consider as well. There is guaranteed income insurance in case a tenant does not pay rent and insurance to cover additional construction that may be required to bring your building up to code. Most importantly, you should consider flood insurance. Floods are not grouped in with natural disasters and require a separate policy for coverage.
Always purchase insurance coverage from a licensed, reputable agency. For the best coverage, look for agencies that are experienced in providing insurance to landlords.
