Can You Insure Multiple Rental Units Under One Policy? Here’s What to Know

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

As a property owner with multiple rental units—whether a duplex, triplex, or large apartment building—you may wonder if you can insure all your units under a single rental property insurance policy.

The answer depends on the type of property, number of units, and coverage needs. Understanding your options ensures you have adequate protection without gaps.

Single Policy for Small Multi-Unit Properties

For small multi-unit buildings, such as duplexes or triplexes, many insurance carriers allow owners to cover multiple units under one rental property insurance policy.

This type of policy typically includes:

Property coverage for all units
Liability protection
Optional endorsements like loss of rental income or equipment breakdown

Using a single policy can simplify billing and claims management.

Separate Policies for Larger Buildings

For larger properties, such as apartment complexes with 5+ units, insurers usually require:

A separate policy for each building
Or a comprehensive multifamily rental property insurance policy that consolidates coverage across the property

Large properties have higher exposure to liability and property damage, so coverage must meet the increased risk level.

The National Apartment Association recommends evaluating risk exposure before combining units under one policy.

Key Considerations When Insuring Multiple Units

Liability Risk – Higher tenant density increases the chance of accidents or lawsuits.
Coverage Limits – Ensure property and liability limits are sufficient for all units.
Loss of Rental Income – If multiple units are damaged, income loss coverage is critical.
Optional Endorsements – Consider umbrella liability, ordinance and law coverage, sewer backup, and equipment breakdown.

These coverages ensure your policy fully protects the combined exposure of multiple rental units.

Pros and Cons of One Policy vs. Multiple Policies

Option	Pros	Cons
One policy for multiple units	Simplifies management, potentially lower premiums	Limits may not cover large losses, risk concentration
Separate policies per unit/building	Customized limits, reduces risk of coverage gaps	More administrative work, may increase total premiums

How Wexford Insurance Can Help

At Wexford Insurance, we help property owners determine whether a single policy or multiple policies best protect their rental portfolio. We provide guidance for: