Top Add-ons for Multi-unit Rental Property Insurance Policies

Owning a multi-unit apartment building or other type of dwelling is a significant undertaking. Being responsible for the home someone else lives in, let alone several, can expose landlords to substantial risks. In some cases, a standard multi-unit rental property insurance policy may be insufficient to cover all potential exposures. So it’s essential to consider additional endorsements, or add-ons, that can round out a policy to provide greater financial protection.

What Is an Add-on?

An add-on is also known as an endorsement. Simply put, it’s another layer of coverage you can tack onto your existing policy rather than securing an entirely new policy for that risk. Often, a policy endorsement can be less costly than a new one altogether.

What Are the Top Add-ons to Consider?

The following are valuable endorsements to consider adding to your multi-unit rental property insurance:

• Ordinance and law coverage—Your property insurance limits should be high enough to fully replace your building after an incident (e.g., a fire), bringing it back to its pre-loss condition. However, your property insurance may be insufficient if your building is older and needs to meet newer building codes (i.e., often with more expensive materials). Ordinance and law coverage can help bridge this gap and help cover the costs to bring your building up to code.

• Rental income coverage—Sometimes known as business income coverage, this endorsement can help reimburse you if units become uninhabitable due to a covered event and you cannot collect rent.

• Equipment breakdown coverage—This coverage can help pay for repair and replacement costs when essential building systems fail. Depending on the endorsement, this may include HVAC, plumbing and electrical issues, among others.

• Umbrella liability coverage—Umbrella coverage can expand your existing liability limits to account for particularly costly incidents. For instance, if a tenant slips in a common area and sues, the resulting costs could quickly exhaust your standard liability limits. In such cases, umbrella coverage can kick in and help pay for the remainder.

Many other types of endorsements may be relevant to your building and unique risk profile. Discuss your operations with an insurance professional from Paris-Kirwan Insurance & Associates to learn more.

Which Endorsement Do I Need?

When evaluating the needs of your multi-unit rental property, consult with Paris-Kirwan Insurance & Associates. Let us help assess your circumstances and recommend suitable coverage for your unique circumstances. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.