What Does Multifamily Property Insurance Actually Cover?

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

Owning a multifamily property—such as a duplex, triplex, or large apartment building—comes with unique risks that differ from single-family homes. Multifamily property insurance is designed to protect owners from financial losses caused by property damage, liability claims, and rental income disruptions.

Understanding what this insurance actually covers helps landlords avoid costly surprises and ensures comprehensive protection for their investments.

Property Coverage in Multifamily Property Insurance

Multifamily property insurance covers the physical structure of the building against perils such as:

Fire and smoke
Windstorms and hail
Vandalism
Water damage (from burst pipes or leaks)

It also typically covers permanent fixtures such as:

Kitchens and bathrooms
HVAC systems
Plumbing and electrical systems

For more on what standard property coverage includes, visit the Insurance Information Institute.

Personal Property and Equipment Coverage

Some multifamily property insurance policies also protect owner-provided contents, like:

Laundry machines and appliances
Office equipment in leasing offices
Furnishings in furnished units

This coverage usually does not extend to tenant belongings, so renters should carry their own insurance.

Liability Coverage in Multifamily Property Insurance

Liability coverage protects property owners if someone is injured on the premises. Typical scenarios include:

Slip-and-fall accidents in common areas
Dog bites
Injuries from improperly maintained structures

This coverage pays for legal defense costs and settlements up to policy limits. Learn more about landlord liability at the National Apartment Association.

Loss of Rental Income Coverage

Loss of rental income coverage (sometimes called business income coverage) reimburses owners if tenants must temporarily vacate due to covered property damage. This can help pay:

Mortgage payments
Property taxes
Operating expenses

For more information on rental income protection, see the Insurance Information Institute.

Common Optional Endorsements for Multifamily Property Insurance

Many landlords add endorsements to multifamily property insurance for extra protection, including:

Ordinance and law coverage for code upgrades
Sewer and drain backup coverage
Equipment breakdown coverage
Umbrella liability coverage for catastrophic events

These endorsements ensure coverage gaps are minimized and financial exposure is reduced.

Why Multifamily Property Insurance Matters

Without proper coverage, landlords risk:

Paying for repairs out-of-pocket
Facing lawsuits that exceed liability limits
Losing rental income after a covered event

Multifamily property insurance safeguards both property and income, providing peace of mind for owners.

How Wexford Insurance Can Help

At Wexford Insurance, we specialize in multifamily property insurance tailored to the size, location, and unique risks of your apartment building or multi-unit property.

We help owners: