Find the right insurance for your multi-unit property

1. Understand the Types of Coverage Needed

• Property Insurance: Covers the building structure and common areas.
• Liability Insurance: Protects against injuries or damages that occur on the property.
• Loss of Income Insurance: Covers loss of rental income due to uninhabitable conditions from a covered loss.
• Flood Insurance: Consider if your property is in a prone area, as these are not typically covered under standard policies.

2. Determine the Scope of Coverage

• Evaluate the value of the building, including all units and common areas, to ensure you have enough coverage to rebuild in case of a total loss.
• Consider the value of any personal property you own within the property, like appliances or furniture provided to tenants.
• Assess your liability risk, factoring in the number of units and the likelihood of claims.

3. Research Insurers

• Look for insurance companies with experience in multi-unit properties or commercial real estate.
• Check their financial stability, customer service ratings, and reviews from other property owners.
• Consider working with an insurance broker who specializes in real estate or multi-unit properties. They can provide valuable advice and help you compare quotes from different insurers.

4. Prepare Your Property Details

• Insurers will need detailed information about your property, including age, construction materials, number of units, occupancy rates, and any safety features or improvements (e.g., fire alarms, sprinkler systems, security systems).
• Have a record of any recent appraisals, renovations, or upgrades to the property.

5. Understand Policy Exclusions and Limits

• Carefully review any exclusions and coverage limits in the policy. Make sure you understand what is not covered and consider additional riders or policies if necessary.

6. Apply for Quotes

• With your information and coverage needs in hand, apply for quotes from several insurers to compare coverage options and premiums.
• Be prepared to provide detailed information about your property and any tenants.

7. Evaluate Quotes and Coverage

• Compare the quotes not just on price, but also on the coverage limits, deductibles, exclusions, and any additional coverage options.
• Pay attention to the policy’s loss settlement provisions—whether it offers actual cash value or replacement cost coverage.

8. Choose a Policy and Finalize Coverage

• After evaluating your options, choose the policy that best fits your needs and budget.
• Work with the insurer or your broker to finalize the policy, ensuring all details are accurate and you understand your coverage.

9. Regularly Review and Update Your Policy

• Your insurance needs may change over time due to property improvements, changes in rental income, or changes in the property’s value.
• Regularly review your policy and communicate any significant changes to your insurer to ensure your coverage remains adequate.

10. Compliance and Legal Considerations

• Ensure your insurance coverage meets any legal requirements or lender requirements if the property is financed.
• Some locations have specific insurance requirements for multi-unit properties, so verify local regulations.