Apartment vs. Homeowners Policy: Why Your 4-Plex Needs Commercial Insurance

Nate Jones, CPCU, ARM, CLCS, AU
5 days ago
2 min read

Updated: 3 days ago

Owning a 4-plex or multi-unit building is different from owning a single-family home. Many landlords assume a homeowners policy will suffice, but standard policies are designed for owner-occupied residences and may leave you exposed to costly gaps.

Understanding why your 4-plex requires commercial or landlord insurance is key to protecting your investment, tenants, and rental income.

Homeowners Insurance vs. Apartment/Commercial Insurance

Homeowners Insurance

Homeowners insurance is intended for single-family, owner-occupied homes. While it provides:

Property protection for fire, theft, or storms
Liability coverage for accidents on the property

it usually excludes rental activity, multi-unit dwellings, and business-related liability. If you rely solely on a homeowners policy for a 4-plex, claims related to tenant injuries, property damage, or lost rental income may be denied.

Apartment or Commercial Insurance

Commercial or landlord insurance is specifically designed for multi-unit properties. Coverage typically includes:

Property Coverage – Buildings, fixtures, and landlord-owned appliances
Liability Coverage – Injuries to tenants or visitors, legal fees
Loss of Rental Income – Replaces income if units are uninhabitable due to covered events
Contents Coverage – Furniture, equipment, or appliances provided for tenants

For more guidance on landlord coverage and risk management.

Risks of Using a Homeowners Policy for a 4-Plex

Claims may be denied if multiple units are rented
Liability for tenant injuries may exceed coverage limits
Loss of rental income is usually not included
Property damage caused by tenants may be excluded

Even minor incidents, like a kitchen fire in one unit, could leave you financially liable without proper commercial coverage.

How Wexford Insurance Can Help

At Wexford Insurance, we help landlords and apartment owners secure commercial insurance policies tailored for multi-unit properties. Our coverage ensures protection for: