Home Insurance for Multiunit Properties: What Landlords and Property Owners Should Consider

Owning multiunit properties, such as duplexes, triplexes or apartment complexes, can be a lucrative investment. However, it comes with unique challenges and risks that require specialized insurance coverage.

Insurance Considerations for Property Owners and Landlords

The following are key considerations for landlords and property owners when selecting insurance for multiunit properties:

• Obtain well-rounded property coverage. Multiunit properties need robust property coverage to protect against damage to the building and attached structures. This can include coverage for common areas, exterior elements and individual units. Property coverage should also extend to items within the units, such as appliances and furniture provided by the landlord.

• Review liability protection. Liability coverage is crucial for landlords to safeguard against claims arising from tenant injuries or accidents on the property. This can include incidents in common areas, such as stairwells or parking lots.

• Consider loss of rental income coverage. In the event of damage that renders the property uninhabitable, loss of rental income coverage can compensate landlords for the lost revenue. This is essential for maintaining cash flow and covering mortgage payments during repairs.

• Include coverage for tenant damage. Landlord insurance should consider including protection against damage caused by tenants. This can cover repairs for vandalism, negligence or accidental damage to the property.

• Consider additional coverage options. Consider additional coverage options such as builders risk insurance for construction projects, inflation adjustments to coverage and workers’ compensation if you employ staff for property maintenance. These options can offer extra layers of financial protection tailored to the specific needs of multiunit property owners.

• Educate tenants. Landlords should educate tenants about the scope of their insurance coverage and encourage them to obtain renters insurance. Renters insurance can cover tenants’ personal belongings and provide liability protection, reducing potential disputes.

Learn More

For property insurance near you, contact Gomez Tax Inc.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.