California Multi-Unit Residential Property Coverage

by Shane Eastman

California Multi-unit residential operations have special insurance needs. Property Insurance can be a challenge because the heightened risk of fires arising from habitational occupancy and because of vulnerability to severe damage from wind and hail. Liability Protection is critical, because there can be serious injuries or even loss of life on apartment premises, and substantial lawsuits are common – high-limit Umbrella Liability policies should always be considered as an essential component of any complex’s insurance program.

Finding the best company for an apartment operation can be a real challenge, especially for insurance agents who don’t work in this area every day. To work effectively with underwriters and the few good companies that do insure apartments, an agent has to know the apartment industry and has to be able to speak knowledgeably about California apartment complex clients and prospects.

A few of the coverage’s you should be looking for on your policy,

Building Coverage– Covers the building and structures at the described premises including: Garages, storage buildings, swimming pools, fences, retaining walls, both completed additions and additions under construction and other appurtenant structures. Building coverage also includes, owned personal property used to maintain or service the building and premises
Comprehensive General Liability– To help protect the insured against legal liability caused by bodily injury, property damage, personal injury, and advertising injury to others
Loss of Income– Covers the actual loss of business income caused by a suspension of operations because of covered accidental direct physical loss to the insured premises, including any extra expense incurred to the extent it minimizes the loss of income
Equipment Breakdown– Provides coverage for damage to covered property caused by mechanical breakdown of covered equipment, artificially generated current damaging covered equipment, explosion of steam boilers or loss of steam/hot water boilers
Building Ordinance – Covers the loss of value and increased cost due to the enforcement of municipal laws or ordinances regulating the construction or repair of damage buildings caused by an insured loss
Data Compromise– Coverages work together to help your business and you get back on track after a data breach occurs or if you, the business owner, becomes a victim of identity theft

The size of an apartment business makes a big difference in which insurers will be the best match, and size also affects the insurance program’s design. We have the required expertise and the access to insurance markets required to handle all classes of apartment clients – from single duplexes to multi-location / multi-state apartment giants. Multiple-location accounts may frequently benefit by adopting a “loss limit” approach on Property insurance (this can be much more cost effective than a simple “Blanket Limit” approach, while still providing adequate insurance protection). Similarly, we can produce Liability programs that meet the needs of multiple-entity / multiple activity / multiple location clients.

If you have any questions please do not hesitate to contact our Multi-Property policy division at Eastman Insurance Solutions. Getting started is easier than you may think, call us directly at 866-779-8946 to speak with one of our trusted licensed professionals.