Top 7 Most Common Apartment Insurance Claims and How to Avoid Them
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
Apartment insurance protects property owners from financial losses related to property damage, liability claims, and lost rental income. However, apartment insurance claims are often preventable with proper maintenance and risk management.
Below are the top apartment insurance claims filed by apartment property owners—and how to reduce the likelihood of each.
1. Water Damage Claims in Apartment Insurance
Water damage is the most common apartment insurance claim, often caused by burst pipes, appliance failures, or roof leaks.
How to Reduce Apartment Insurance Claims:
Inspect plumbing regularly
Install leak detection devices
Winterize exposed pipes
The Insurance Information Institute notes that early detection significantly reduces insurance losses.
2. Fire and Smoke Damage Apartment Insurance Claims
Fire-related losses are among the most expensive apartment insurance claims, as damage often spreads across multiple units.
Prevention Tips:
Maintain fire alarms and sprinklers
Upgrade outdated electrical systems
Enforce no-smoking policies
3. Liability Claims Covered by Apartment Insurance
Slip-and-fall injuries in stairwells, parking lots, or common areas frequently lead to apartment insurance liability claims.
How to Prevent Liability Claims:
Keep walkways well lit and hazard-free
Repair uneven surfaces
Document maintenance routines
The National Apartment Association recommends routine inspections to reduce liability exposure.
4. Storm and Wind Damage Claims
Storm damage claims are a major component of apartment insurance property claims, especially in areas prone to hail or strong winds.
Risk Reduction Tips:
Inspect roofs annually
Trim overhanging trees
Secure exterior fixtures
Building upgrades required after storm losses may be governed by code requirements published by the International Code Council.
5. Theft and Vandalism Apartment Insurance Claims
Apartment insurance often covers vandalism and theft in common areas, which can be costly and disruptive.
Prevention Measures:
Install security cameras
Improve exterior lighting
Implement tenant screening policies
6. Mold Claims and Apartment Insurance Coverage
Mold claims are typically linked to unresolved water damage and can complicate apartment insurance claims if not addressed quickly.
How to Reduce Mold Risk:
Repair leaks immediately
Ensure proper ventilation
Conduct post-loss inspections
7. Loss of Rental Income Claims Under Apartment Insurance
When a covered loss makes units uninhabitable, apartment insurance with loss of rental income coverage helps replace lost rent.
The Insurance Information Institute explains how business income coverage applies to rental properties.
Why Claim Prevention Matters for Apartment Insurance
Frequent apartment insurance claims can result in:
Higher premiums
Reduced coverage options
Policy non-renewals
Strong maintenance practices and correctly structured apartment insurance policies help protect both cash flow and long-term insurability.
How Wexford Insurance Can Help with Apartment Insurance
At Wexford Insurance, we specialize in apartment insurance for multi-unit property owners. We help clients:
Identify claim trends
Optimize apartment insurance coverage
Reduce premiums without cutting protection
