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Apartment Insurance

Apartment owners face a great number of inherent and hidden risks in their daily operations. This requires an insurance program that is comprehensive enough to protect against a number of exposures, especially for larger complexes, with say, 150 units or more.


These complexes (which can include market-rate apartments, affordable housing, student housing, and others) as they have additional exposures and are more difficult to maintain. You have 150 or more individual tenants to deal with in terms of safety issues and local standards, for one thing. It means knowing the types of issues and exposures you may need to prevent and having the proper apartment insurance for any and all circumstances.


Additionally, the cost of property coverage has risen one to two percent over the last year, as insurance carriers have suffered significant natural catastrophic losses to properties in 2011, and have experienced a higher number of claims in this sector.


But while the cost of apartment insurance seems to be moving from a “soft” to “flat” market (rising prices) with coastal areas seeing even higher rates, there is still a silver lining for those in the rental business. Increasingly, more people are moving away from the dream of purchasing a home, and choosing to rent. Rents are going up and vacancies are decreasing. In fact, according to the National Association for Realtors (NAR), the apartment rental market is expected to see vacancy rates fall to 4.3 percent by the fourth quarter of 2012 (down from 5 percent in the previous year’s fourth quarter).


As your vacancies decrease, be sure that proper measures are taken to reduce risks with a solid foundation of apartment insurance and risk management strategies to protect your valued commodity.