What Does Apartment Property Insurance Cover for Building Owners?
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 21
- 2 min read
If you own an apartment building, understanding exactly what apartment property insurance covers is critical when comparing policies or requesting a quote. Coverage gaps or misunderstandings can lead to major out‑of‑pocket costs after a loss. Here’s a clear breakdown of what property insurance typically covers for apartment building owners, and why proper protection matters.
1. Coverage for the Building Structure
Apartment property insurance primarily covers physical damage to the building itself. This includes:
Roofs, walls, floors, and foundations
Common areas such as hallways and stairwells
Attached structures like garages or laundry facilities
Damage caused by fire, wind, hail, smoke, vandalism, and certain weather events is commonly included.
2. Protection for Systems and Fixtures
Policies typically cover permanently installed systems such as:
Electrical wiring
Plumbing systems
HVAC equipment
Boilers and water heaters
Some equipment may require endorsements, particularly for equipment breakdown or older mechanical systems.
3. Loss of Rental Income (Business Interruption)
If a covered loss makes your apartment units uninhabitable, property insurance may cover lost rental income during repairs. This coverage helps maintain cash flow while restoration work is completed.
4. Liability and Medical Payments (When Added)
While apartment property insurance focuses on the building, many owners also add general liability coverage. This protects against injury claims from tenants or visitors related to common areas.
Examples include slip‑and‑fall claims or injuries in shared spaces.
5. Optional Coverage Apartment Owners Should Consider
Depending on location and building age, additional options may include:
Ordinance & law coverage
Flood insurance (not included in standard policies)
Earthquake coverage
Replacement cost coverage (vs. actual cash value)
These add‑ons can significantly strengthen protection for apartment owners.
Get the Right Coverage for Your Apartment Building
Coverage varies widely between insurers, which is why working with a specialist matters. Wexford Insurance works with insurance companies that insure apartment buildings across the nation, helping owners compare options and secure the right coverage.
👉 Request your apartment building insurance quote today at Wexford Insurance
