Owning an apartment building can bring in thousands of dollars worth of income each month, depending on how many units there are and how much the rent is. Of course, it is important to consider the expenses of owning rental property as well, including the types of insurance you’ll need.
Property insurance is perhaps the most important type of apartment building insurance coverage you need. Property insurance protects your building from a number of financial losses for various reasons. Do you live in an area with lots of wind and rain? Perhaps you’re worried about a fire. Property insurance may even cover vandalism, vehicle damage, or other unexpected problems, making it most important for protecting your investment.
Business Income Insurance
Business income coverage falls in line with property insurance. Typically, if property damage is enough to warrant filing a claim, your tenants won’t be able to live in their apartments while repairs are done, which means less income for you. Business income coverage reimburses you for some or all of the income you lose while your building is being repaired.
When seeking an agent to help you determine the apartment building insurance coverage you need always be diligent. Seek out respected agents who are experienced with income properties, are licensed, and have a strong reputation both with the Better Business Bureau and with current and former clients.