When purchasing an apartment building, there are several insurance coverages you should consider to protect your investment. Here are some common types of insurance coverage you may need:

  1. Property Insurance: This coverage protects the building structure itself and typically includes coverage for fire, vandalism, natural disasters, and other perils. It may also include coverage for the building’s contents such as appliances or furnishings that you provide.
  2. Liability Insurance: Liability coverage is crucial for apartment buildings as it protects you against claims if someone is injured or their property is damaged while on your property. This coverage helps cover legal costs, medical expenses, and potential settlements or judgments.
  3. Umbrella Insurance: Umbrella insurance provides additional liability protection beyond the limits of your primary liability policy. It helps protect you in case a severe liability claim exceeds the limits of your other policies.
  4. Loss of Income/ Rental Income Insurance: This coverage is also known as business interruption insurance and helps cover lost rental income if your apartment building becomes uninhabitable due to a covered peril. It can provide income during the repair or rebuilding process.
  5. Workers’ Compensation Insurance: If you have employees working at the apartment building, workers’ compensation insurance is typically required by law. It provides coverage for medical expenses and lost wages if an employee is injured or becomes ill while performing work-related duties.
  6. Flood Insurance: Depending on the location of the apartment building, you may need separate flood insurance. Standard property insurance policies usually exclude flood damage, so it’s important to evaluate the flood risk in the area.
  7. Crime Insurance: Crime insurance protects against losses due to criminal activities such as theft, burglary, or vandalism. It can provide coverage for stolen property or damage caused by criminal acts.