Apartment Insurance Can Minimize The Owner’s Risk

Last Updated: January 7, 2010By

By Tony Freeman

For most people, apartment ownership means a big investment with special risks. Buying an apartment is a big undertaking and as an owner you need to make sure that you are adequately protecting your investment.

You’ll want to make sure you have coverage for your property, your liability and loss of rents. The main components of an apartment policy include: the building, business property, business liability and loss of rents.

The building provides coverage for accidental loss to the building and other structures attached to it like a garage or wall. If there are detached structures on the property, make sure to clearly define their use. If the structures are used for commercial, manufacturing, farming, or if your tenant decides to use them for any of these purposes or other business purposes, a standard apartment policy may not cover losses arising from these activities.

Business Property
Keep in mind, business property includes items such as appliances, maintenance, and service equipment owned by you. If your apartment policy does not include this type of coverage, you might be exposed.

Business Liability
This important coverage insures you against bodily injury, personal injury, or property damage resulting from the ownership, use or maintenance of the property. These types of claims are the ones that could affect you and your family for a lifetime if you are not properly insured. Business liability may also include coverage for the cost of legal defense. Do you know the coverage limits on your current rental dwelling policy? If you don’t know the answer, I’d suggest you start your research today.

Loss of Rents
This coverage reimburses the fair rental value of the dwelling for up to 12 months if your rental dwelling is left unfit for occupancy due to a covered loss. Does your current policy cover you for the loss of rents due to unforeseen circumstances like a fire? It’s an answer you should know.

There are additional coverages included in a rental dwelling policy. Please check your policy for a complete description of coverage and loss or damage not insured.

About the author
Tony Freeman is a State Farm Agent with over 15 years experience in the insurance industry and 9 years experience as a landlord.  Tony earned his Bachelor of Arts degree from California State University, Fullerton in Communications and his Masters in Business Administration from the University of La Verne.  His agency was recently featured in the business section of the Los Angeles Time for their popular weekly Small Business Makeover section.  He can be reached by phone at (800)791-6320 or by fax at (951)340-3568 or by e-mail at tony@tonyfreeman.net


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