Best Apartment Property Insurance Options for Building Owners
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 21
- 2 min read
Choosing the right apartment property insurance is one of the most important decisions a building owner can make. Not all policies are created equal, and selecting the wrong type of coverage can leave major gaps after a loss. Understanding the best apartment property insurance options for building owners helps protect your investment, income, and long‑term financial stability.
1. Replacement Cost Property Insurance
Replacement cost coverage is considered the industry standard for apartment buildings. It pays to rebuild or repair the property using current material and labour costs, without depreciation. This option is strongly recommended for owners with mortgages or properties in areas with rising construction prices.
2. Loss of Rental Income Coverage
Loss of rental income (business interruption) coverage compensates owners when a covered loss makes units uninhabitable. This option is critical for maintaining cash flow during repairs and avoiding financial strain following events like fires, storms, or major water damage.
3. Ordinance & Law Coverage
Many apartment buildings, especially older properties, must be brought up to current building codes after a loss. Ordinance & law coverage helps pay for:
Demolition of damaged sections
Required upgrades to meet modern codes
Without this coverage, owners may face significant out‑of‑pocket expenses.
4. Equipment Breakdown Coverage
Apartment buildings rely on boilers, HVAC systems, elevators, and electrical infrastructure. Equipment breakdown coverage protects against mechanical or electrical failure not covered by standard property policies.
This option is especially valuable for mid‑to‑large multifamily properties.
5. Flood or Earthquake Insurance (When Applicable)
Standard apartment property insurance excludes flood and earthquake losses. Buildings in flood zones or seismic regions should carry separate policies to avoid catastrophic uncovered losses.
How to Choose the Right Insurance Option
The best insurance strategy depends on:
Building age and construction type
Geographic location
Unit count and occupancy
Risk tolerance and financial goals
Working with a specialist ensures coverage is customised, rather than generic.
Get the Best Coverage for Your Apartment Building
Wexford Insurance works with insurance companies that insure apartment buildings nationwide. We help owners compare policy options, identify coverage gaps, and secure tailored protection at competitive pricing.
👉 Request your apartment building insurance quote today at Wexford Insurance
