Apartment Building Insurance in Massachusetts

What is Apartment Building Insurance?

Owning an apartment building can be a profitable business venture, but it comes with a certain level of risk. The building itself can be damaged or destroyed, and tenants or visitors may file liability suits. Apartment building owners in Massachusetts can mitigate some of the risks they face by purchasing apartment building insurance.

Apartment building insurance is similar to landlord insurance, but apartment building policies are generally written for larger structures that have more units in them. The policies take into account the complexities and increased risks that come with owning a sizeable rental property.

What Protections Does Apartment Complex Insurance Offer?

Broadly speaking, most apartment complex insurance protections can be divided into property coverages and liability coverages. Property coverages normally insure physical property against certain causes of damage. Liability coverages usually insure the property owner against certain potential liability suits.

Some of the property coverages that an apartment complex policy might offer are:

• Commercial Property Coverage, which may cover an apartment building and any landscaping
• Commercial Contents Coverage, which may cover portable and smaller equipment
• Boiler and Machinery Coverage, which may cover larger equipment
• Flood and Earthquake Coverage, which may include floods and earthquakes among the covered perils

Some of the liability coverages that a policy might offer are:

• General Liability Coverage, which may cover a range of common accidents
• Professional Liability Coverage, which may cover professional errors that cost tenants
• Commercial Umbrella Coverage, which may provide supplemental liability protection

(Exact protections vary depending on the coverages, terms and conditions found in a particular policy.)

Do Apartment Complex Insurance Policies Include Workers Compensation?

Many apartment building owners need workers compensation coverage. Massachusetts law requires most businesses with employees to carry this insurance, and apartment building owners typically have at least a few employees.

Apartment complex policies, however, normally don’t include workers compensation coverage. This coverage must usually be purchased separately, through a stand-alone policy. Thankfully, knowledgeable insurance agents who specialize in apartment complex insurance are often also well-versed in workers compensation.

Who Needs Apartment Complex Insurance?

Landlords in Massachusetts who have sizeable multi-unit rental properties generally ought to consider getting an apartment complex policy. After all, few landlords could afford to completely rebuild their property if it were destroyed or face all the costs that can accompany a liability lawsuit by themselves.

Anyone who’s unsure whether an apartment complex policy or landlord policy is better-suited for their situation should speak with an insurance agent who specializes in this type of insurance. An agent who knows what’s in both apartment complex and landlord policies will be able to recommend one or the other.

How Are Apartment Building Policies Premiums’ Determined?

Insurance companies take into account many factors when setting apartment policies’ premiums. Some of the items that might impact a policy’s cost include the:

• Location of an apartment building
• Distance to a fire station
• Materials the building is made of
• Size of the building
• Number of units in the building
• Coverages and limits chosen

How Can Massachusetts Building Owners Get Apartment Building Insurance?

For help finding apartment building insurance that’ll provide robust protection for an apartment building you own, contact the insurance agents at Dempsey Insurance. Our team has worked with many people and businesses that own apartment buildings in Massachusetts, and we’d be happy to assist you as well. We’re able to compare policies from different insurers, and our agents have the expertise needed to help you decide which policy provides the best level of protection.