A well put together insurance program consists of several components just like your building. The insurance policy should include property insurance, general liability insurance, equipment breakdown/boiler and machinery insurance, crime insurance and auto insurance.
Property Insurance for your apartment building will protect the physical structure and items used to service the building and appliances from the following: f ire, lightning, wind storm, vandalism, burst water pipe or supply line, and even damage if struck by a vehicle or aircraft.
An additional component of property insurance is loss of income/or loss of rents. Business income insurance provides the insured with lost income if the building becomes uninhabitable because of a covered insurance loss.
General Liability Insurance protects you, the building owner from claims (actual or alleged) of bodily injury or property damage to others on the premise. "Others" is as varied as, tenants, visitors of the owner or tenants and contractors. The General Liability section also provides medical payments to others for bodily injury that occurs on your premise regardless of negligence.
Equipment Breakdown Insurance covers the cost to repair or replace damaged equipment, loss of income and additional expenses incurred during the period of restoration. Equipment typically covered includes mechanical items such as pumps and motors and electrical items such as transformers, electrical panels and cables, air conditioners and boilers.
Crime insurance can cover the dishonesty of an employee who is stealing or misappropriating rent payments. Or if rent is still paid in cash and the cash is stolen from the office or your messenger is robbed on the way to the bank.
Auto Insurance is needed even if the entity that owns the apartment buildings does not own a car. If an employee or officer of the business is operating their vehicle for business related to the Apartment building (a run to the hardware store, bank or office supply store) and you are in an accident the entity can be enjoined in a lawsuit.
This article could be entitled Apartment Owners Insurance 101, because this list is not all inclusive. A second article would include such topics as cyber liability, ordinance or law coverage, tenant discrimination and employment practices liability.
A solid insurance program requires a Trusted Choice agent like the Team at Richey-Barrett Insurance. If you want us to create a solid program for your building contact us at 440.835.4800.