Duncan & Stoker
Commercial Insurance Solutions Inc.

What type of insurance do I need for my

apartment building?

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Apartment owners typically need commercial property insurance to cover the building and common areas, general liability for third-party injuries or damages, and loss of rental income coverage. Workers’ compensation is required if you have employees, and additional policies like flood or umbrella insurance may be needed based on location and risk.

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What does property insurance cover for an apartment building?

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Commercial property insurance covers damage to the building and common areas from perils like fire, storms, vandalism, or burst pipes. It does not cover tenant belongings or perils like floods and earthquakes, which require separate policies.

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Do I need flood or earthquake insurance for my apartment building?

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Standard property insurance excludes floods and earthquakes. If your building is in a flood-prone or seismic area, separate flood or earthquake insurance is recommended to cover structural damage and avoid costly repairs.

Does my insurance cover tenant belongings or

just the building?

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Your property insurance covers the building and common areas, not tenant belongings. Encourage tenants to purchase renters’ insurance to cover their personal property and liability, reducing your risk of disputes.

Am I covered for tenant-caused damages or

illegal activities?

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General liability may cover some tenant-caused damages (e.g., accidental fires), but intentional damage or illegal activities (e.g., drug operations) are often excluded. Specific endorsements or crime coverage may be needed, and thorough tenant screening helps reduce risks.​

How much does apartment building insurance cost?​

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Premiums typically range from $500 to $2,000 per unit annually, depending on building size, location, age, and coverage limits. For example, a 10-unit building might cost $5,000–$20,000 yearly for comprehensive coverage, with higher costs in high-risk areas.

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Is landlord liability insurance necessary?

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Yes, general liability insurance is crucial to cover tenant or visitor injuries, property damage claims, or lawsuits related to the property. While not always legally required, it’s often mandated by lenders or lease agreements and protects against significant financial risks.

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What is loss of rental income insurance?

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Loss of rental income insurance covers lost rent if your building becomes uninhabitable due to a covered event (e.g., fire). It’s highly recommended to maintain cash flow for expenses like mortgages or maintenance during repairs.​

What is a certificate of insurance, and

why is it requested?

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A certificate of insurance proves your property has active coverage, detailing policy types and limits. Lenders, tenants, or regulators may request it to ensure compliance with loan terms, leases, or local laws. Your insurer can provide this document.

Do I need an umbrella/excess insurance for

extra protection?

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Umbrella/excess insurance provides additional liability coverage beyond standard policies, ideal for large or multi-unit properties with higher risk exposure. It’s recommended to protect against large lawsuits or claims that exceed your general liability limits.​

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