Owning apartment buildings and condo complexes can be extremely lucrative. It also carries a significant degree of risk, which is why it is critical for owners to invest in quality insurance protection.
It’s essential to choose a provider that understands the differences between the needs of condo owners and those who own apartment buildings.
Apartment Building Insurance
Apartment building owners need more extensive coverage than the average condo owner. Mainly because the apartment owners are responsible for everything the apartment provides.
This includes the basics as well as a few additional items you might not realize:
- Floor coverings
- Wall coverings
- Ceiling materials
You must replace these things in all units affected by the event (fire, wind, vandalism, etc.).
This is in addition to the insurance protection required for public spaces within the complex that includes hallways, elevators, clubhouses, management offices, maintenance equipment storage, pools, dog parks, playgrounds, etc.
The list is longer than you think, and the more perks you offer your tenants, the greater your liability exposure.
Working with professionals who have intimate knowledge of the local and surrounding area as well as your needs as an apartment owner can make a world of difference for your protection and your peace of mind.
Condo Building Owner Protections
Condos differ from apartments in many ways. Rather than renting units, condo owners purchase their units, and you manage and maintain the public spaces. Condo owners often pay fees each month to help contribute to the continued care and upkeep of the property, but they do not provide insurance protection for the public spaces you own and manage.
While you do not need to provide insurance coverage to replace the wall and floor coverings, cabinetry, and appliances in individual units, you are responsible for replacing the carpeting in the hallways, repairing damaged elevators, and any property that belongs to the condo itself.
This includes things like:
- Swimming pools
- Parking lots
- Maintenance rooms
You will likely be responsible for HVAC system repairs and replacements as well, depending on the location and the details of your contract with individual condo owners.
The bottom line is that you need to make sure you have the right kind of insurance protection to cover your investment so you can make repairs quickly so your condo owners can get back to their lives.
Insurance Protection for Condo and Apartment Building Owners
As a condo and apartment owner, you also need to make sure you have business insurance protection and liability coverage to protect your interest. After all, you are operating a business and, in some cases, damage to your buildings interferes with your ability to conduct business making vital protection, like business interruption coverage, essential.
Other types of protection you may need for the business aspect of your apartment and condo include:
- Crime insurance
- Liability insurance
- Umbrella insurance
- Building ordinance coverage (which helps when upgrades are required when repairing your building so that it complies with current city codes and ordinances).
We can help you get the protection you need for the business you operate as well as the property you own. Let our experience and knowledge in the field help you get the right protection for your situation, whether you own an apartment building, a condo building, or both.
Why Generazio Associates, Inc.?
As an independent agency, Generazio Associates, Inc. has been serving the home, auto, and business insurance needs of area residents since 1971. With nearly half a century of experience under our belt, we work with you to identify your coverage needs and then offer options from our extensive list of insurance providers that can help you meet those needs.