In this episode of On The Move, we sit down with Brent Guldahl with Commercial Insurance Solutions to discuss all of the changes in the multifamily insurance market.
Overview
Multifamily insurance, also known as apartment building insurance, is a type of commercial property insurance that specifically covers multi-unit residential buildings, such as apartment buildings, townhouses, and condominiums. It provides financial protection for the building and any common areas, as well as any personal property owned by the landlord, in the event of damage or loss from a covered cause of loss, such as fire or theft.
A multifamily insurance policy typically includes several types of coverage, including:
- Building coverage: Covers the physical structure of the building and any permanent fixtures, such as walls, floors, and ceilings.
- General Liability coverage: Protects the landlord from financial losses if someone is injured on the property and sues for damages.
- Personal property coverage: Covers any personal property owned by the landlord, such as appliances, carpeting, and furniture.
- Loss of rents coverage: Covers any lost rental income if the building is uninhabitable due to a covered loss.
Optional coverage such as Flood Insurance, Earthquake Insurance, and umbrella insurance can be added to provide extra coverage on top of the primary policy.
It's important to note that multifamily insurance is different from renters insurance, which is designed to protect the personal property and liability of individual tenants. Landlords should have their own insurance policy to protect their building and property.