Anything larger than a single-family home is generally considered multi-family. In other words, if it's a dwelling that can house more than one family with multiple bathrooms, kitchens and bedrooms and some kind of separating wall, it's considered multi-family to the insurer.
Duplex and triplex structures and even four-plex structures are generally insured with personal-lines insurance. Commercial-lines insurance covers larger multifamily dwellings such as apartments, townhomes and condominiums.
Risks Faced by Apartment Building Owners
The primary concern for apartment building owners is protection of the property from catastrophic events. Property insurance alone is complicated; your coverage and how much it costs vary depending on the building’s location, type of construction, and a number of other factors.
Your apartment complex insurance also needs to protect you from liability claims and other, less obvious things, like lost income (rent) after a covered loss. You need an independent insurance agent to help you determine the coverage you need to make sure you are fully protected.
Just a few of the risks apartment building owners have to deal with include:
- Fire, storms, and other catastrophic damage to the property
- Liability for tenant, employee and visitor injuries
- Theft or vandalism
- Loss of rental income
- Invading the right to privacy
- Advertising liability
- Discrimination lawsuits filed by disgruntled tenants or employees
- Allegations of fraud, misrepresentation, and other intentional acts by employees
These risks can all be addressed with just a few insurance policies tailored to your needs.