How Much Does Apartment Insurance Cost Per Unit?
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
Apartment owners often ask: How much does apartment insurance cost per unit? Understanding the cost per unit is essential for budgeting, setting rent, and ensuring comprehensive coverage for property, liability, and tenant-related risks.
Insurance costs vary depending on property type, location, and coverage limits, but having the right protection is critical to avoid costly financial exposure.
Factors That Affect Apartment Insurance Costs Per Unit
1. Property Location
Buildings in urban areas, flood zones, or hurricane-prone regions often have higher premiums due to increased risk. Learn more about flood insurance for high-risk areas from FEMA’s flood insurance guide.
2. Building Size and Age
Larger buildings or older structures may cost more to insure because repairs and replacement costs are higher.
3. Coverage Limits
Higher liability limits, property coverage, and contents protection increase premiums but provide stronger protection.
4. Number of Units
Insurers often calculate costs per unit, factoring in tenant turnover, rental income potential, and property value.
5. Risk Mitigation Features
Security systems, smoke detectors, fire alarms, and gated access can reduce premiums. For more guidance on apartment risk management, visit the National Apartment Association.
Typical Coverage and Costs
Apartment insurance usually includes:
Property Coverage – Protects the building structure and permanent fixtures.
Liability Coverage – Covers injuries to tenants, visitors, or contractors.
Loss of Rental Income – Compensates for lost rent if the building becomes uninhabitable.
Contents Coverage – Covers landlord-owned appliances, furniture, or equipment in common areas.
Estimated Costs: While premiums vary, owners typically pay $100–$300 per unit annually for basic coverage. Larger buildings, high-value properties, or high-risk locations may see higher rates.
Why Standard Landlord Insurance May Not Be Enough
Standard landlord insurance may leave gaps in coverage for:
Multi-unit or high-turnover properties
Commercial or mixed-use spaces
Tenant-caused damages
Liability claims exceeding coverage limits
Without proper coverage, minor incidents can escalate into expensive lawsuits or lost rental income.
How Wexford Insurance Can Help
At Wexford Insurance, we specialize in apartment insurance tailored to your building and units. Our policies protect property, liability, tenant damages, and lost income. We assess your location, property type, and risk to find the best coverage at competitive
