Is My Quadplex Properly Insured? 7 Coverage Gaps Most Landlords Don’t Know About
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 3 min read
Many quadplex owners assume they’re fully protected once they purchase landlord insurance—but coverage gaps are more common than most landlords realize. These gaps often aren’t discovered until a claim is denied, a lawsuit arises, or rental income suddenly stops after a loss.
As quadplexes involve multiple tenants, shared spaces, and higher liability exposure, even small oversights in coverage can become expensive mistakes. Below are 7 of the most common quadplex insurance gaps and how to make sure your policy truly protects your investment.
1. Using Homeowners Insurance Instead of Landlord Insurance
One of the biggest mistakes landlords make is relying on a homeowners policy for a quadplex.
Homeowners insurance is designed for single-family, owner-occupied homes, not multi-unit rentals. If your quadplex has tenants, claims related to rental activity may be denied entirely.
✔ Fix: Ensure your policy is written as quadplex landlord or multi-unit property insurance, especially if all units are rented.
2. Insufficient Liability Limits
Quadplexes have higher foot traffic, shared stairways, parking areas, and entry points—meaning more chances for injuries.
Many landlords carry only $300,000 in liability coverage, which may not be enough to cover:
Medical expenses
Legal defense costs
Settlements or court judgments
✔ Fix: Increase liability limits to $500,000–$1 million and consider adding an umbrella liability policy for extra protection.
3. No Loss of Rental Income Coverage
If a fire, storm, or major loss forces tenants to move out temporarily, your mortgage doesn’t stop—but rent does.
Without loss of rental income coverage, you could be responsible for:
Mortgage payments
Property taxes
Insurance premiums
Repairs
✔ Fix: Add or confirm loss-of-rents coverage is included in your quadplex policy.
4. Replacement Cost vs. Actual Cash Value Confusion
Some quadplex policies only pay actual cash value (ACV), which deducts depreciation. That means you may not receive enough money to rebuild after a loss.
✔ Fix: Make sure your building is insured at replacement cost value (RCV) so you’re covered for full rebuild costs—not outdated values.
5. Flood and Earthquake Exclusions
Standard landlord insurance does not cover flood or earthquake damage. If your quadplex is in a FEMA-designated flood zone, flood insurance may also be required by your lender (Find Out More).
✔ Fix: Review your property’s risk exposure and add separate flood or earthquake coverage if needed.
6. Vacant Unit Limitations
Many policies limit or exclude coverage if a unit is vacant beyond a certain number of days (often 30–60 days).
✔ Fix: Notify your insurer if units sit vacant longer than expected and request a vacancy endorsement if necessary.
7. Assuming Tenant Damage Is Always Covered
Landlord insurance typically does not cover intentional damage caused by tenants, such as vandalism or neglect.
✔ Fix: Require tenants to carry renters insurance, conduct regular inspections, and understand exactly what your policy excludes.
How Wexford Insurance Helps Close Coverage Gaps
Wexford Insurance specializes in quadplex and multi-unit rental properties, helping landlords:
Identify hidden coverage gaps
Customize liability and loss-of-income limits
Add flood, earthquake, and umbrella policies
Ensure policies meet lender requirements
Protect long-term rental income and asset value
Final Thoughts
If you haven’t reviewed your quadplex insurance recently, there’s a good chance you’re exposed to at least one of these coverage gaps. The right policy doesn’t just meet minimum requirements—it protects your property, income, and financial future.
A proactive coverage review with a specialist like Wexford Insurance can save you from costly surprises and give you confidence that your quadplex is properly insured.
Contact us today.
