You have saved and invested your money wisely. You have a diverse portfolio including stocks, mutual funds, bonds, and various other holdings including real estate. In fact, you have just purchased an apartment building. Now you are shopping for apartment building insurance. Before you wade into this quagmire, there are several things you should know before finding and purchasing that apartment building insurance policy.
Insurance for actual damages to the building and property is only part of the equation. The apartment building owner must also of course look into the liability part of being an owner. The apartment building owner is responsible for accidents and injuries that take place on the property to tenants and guests.
So basically, your apartment building insurance will have two parts. The first half of the policy will cover actual damages to the building and property, and the second half will focus on your liability as an owner. This liability insurance will include bodily injury and medical insurance that will cover the initial medical bills for the injured party. An apartment building owner is required by law to have both types of insurance. The liability insurance will also cover litigation fees if this becomes necessary.
Before purchasing apartment building insurance, the owner must decide exactly which type of policy is needed and look at the requirements of their particular property. These policies are often difficult to obtain and are often very expensive. This is due to the high liability of the landlords. Landlords will also want to insure themselves against damage done by tenants. This is often covered by having a mandatory security deposit, but oftentimes the damage incurred will exceed the security deposit. A landlord will also need mechanical breakdown insurance to fix utilities within the apartment building.
