NYC Insurance Blog

A Guide to Understanding Multi-Family Building Insurance.

If you own a multi-family residence, you must understand the options available for insuring your property. You also must be aware of what is covered and what is not covered under the various policies available. You can also enlighten your residents on what is covered and what is not by your insurance provider. Enquire if they might be interested in purchasing a policy on their own.

So, what is a multi-family residence? The insurance industry defines this as any building or structure that can house more than one resident on its own. These units have their living room, bathrooms, kitchen, and the units are divided by walls keeping them private and separate. For instance, a duplex (a building with 2 units side by side), or a fourplex (a building with four separate units).

Types of Insurance Policies For Multi-Family Property.

Risks occur in any type of business and in multi-family property the risks are greater. This is because it has more tenants, more units, and common amenities the risk of accidents occurring increases. However, there is a solution for this, there are insurance policies you as an owner can consider taking up.

1. General Liability Policy.

General liability protects the owner of the property against claims for bodily injury and third-party property damage. 

For example, if a tenant trips and falls on a too worn-out staircase and breaks their leg or arm, they miss working for a couple of weeks. Their medical cover may cover their treatment. But if they decide to sue you claiming that you should have repaired the staircases and paid for the problems, they suffered e.g., loss of wages. Give us a call today, to discuss General Liability Insurance.

General liability insurance will cover these costs like the lost wages and lawyer fees.

2. Property insurance policy.

Property insurance covers damages to the physical structure of your property. There are two types of property insurance:

• Structure-wise Insurance whereby if your property has multiple structures, each is insured separately. It costs more but you get better coverage for all units and you do not have to worry about things like mold.
• Whole Property Policy whereby the insurance covers your property as a whole regardless of the number of units/buildings it has. 

In both policies, the actual face value of the policy will entirely depend on the size and value of the property. In case of damages to your property due to fire or natural events, the insurance reimburses you for the damages. Contact us to find out more about property insurance, and the best coverage for you!

• Umbrella Liability Coverage whereby it provides additional coverage and covers what other policies do not cover. It ensures that there are no gaps in your other insurance coverage.
• Rental Income Insurance compensates the owner in case there are interruptions of normal business income. 

Cost Of Insuring Your Multi-Family Property.

The cost of ensuring your multi-family property varies depending on several factors. Insurance providers look at information such as:

• The number of nits your property has.
• The location of the property.
• Age and condition of the property.
• The type of security features and protection against fire features.
• The material used to construct your property. 

If you have a multi-property building, you should consider insuring it to protect you and your business. If possible, you should consider having all types of multi-family building insurance for maximum protection and coverage. Give us a call for a free quote today!

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