Apartment Building Insurance

Apartment Building Insurance

Customized, low-cost commercial insurance for apartment buildings to protect property owners from the risks they face

Trusted by over 300,000 Canadian small business owners!

Save up to 35% on your insurance

Get the best insurance quote in a few clicks!

Trusted by over 300,000 Canadian small business owners!
Save up to 35% on your insurance
Get the best insurance quote in a few clicks!
Get a Free Quote
Zensurance - Apartment Building Insurance Coverage

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Quick and Easy Insurance for Apartment Buildings

Apartment building property owners face many risks and liabilities associated with owning and managing multi-unit residential properties.

A comprehensive apartment building insurance policy is not just a necessity, it’s a source of peace of mind. It’s your shield, protecting your investments, managing liability risks, and ensuring financial stability.

Apartment Building Insurance, Explained

What is apartment building insurance?

Apartment building insurance from Zensurance is not a one-size-fits-all solution. It’s a customized policy that understands and addresses the unique risks building owners face. It’s designed to help you recover quickly from damages, losses, legal threats and tenant disagreements.

Apartment building insurance protects the property owner’s financial interests by covering the building’s physical structure and permanently attached structures, the owner’s business contents, and the third-party liability risks they face.

Comprehensive insurance for apartment building owners may include the following coverages:

  • Commercial General Liability (CGL) Insurance: CGL, or general liability insurance, covers third-party bodily injury and third-party property damage claims that occur on your premises. For example, if a tenant or a visitor to the building trips and falls on your walkway or main entrance and requires medical attention, CGL may cover their medical and rehabilitation expenses.
  • Commercial Property Insurance: Also known as commercial building insurance, commercial property insurance covers damage and loss to your apartment building caused by fire, water, a natural disaster or extreme weather, theft, and vandalism. Commercial property coverage may also pay for damage to the tenant improvements you make to the building that are permanent, such as flooring or carpeting, lighting, and paint. 

Commercial property insurance may also include business contents insurance to cover items not permanently attached to the building, such as kitchen appliances in apartment units, furniture in your lobby or common area, and computer and office equipment in the property manager’s office. If not included, you can add business contents coverage to your policy.

  • Equipment Breakdown Insurance: Equipment breakdown insurance covers sudden and unexpected internal electrical or mechanical malfunctions of your building’s infrastructure, such as elevators, the HVAC system, the water heater and boiler, and your office equipment and electronics.  
  • Rental Income Insurance: Often included with a commercial property policy, rental income insurance covers lost rental income following an insurable loss if you’re forced to close the building for repairs temporarily. You can include this coverage if it’s not automatically included in your commercial property policy.

There are optional coverages you may wish to add to your policy to bolster your protection, such as:

  • Sewer Backup Insurance: If your building is unexpectedly damaged by a municipal sanitary sewer that floods the building and its units through drains, toilets, or septic tanks, sewer backup insurance is designed to cover the costs of cleaning it up. This coverage can be particularly beneficial if your building is located in an area prone to heavy rainfall or has an aging sewer system.
  • Overland Flood Insurance: Most commercial property policies do not include overland flood insurance. This optional add-on coverage may pay your expenses if a freshwater flood caused by extreme weather, a spring thaw, or an overflowing body of water inflicts internal and external damage to your property.
  • Earthquake Insurance: Earthquake insurance covers losses and damages to your property and contents caused by earthquakes.
  • Legal Expense Insurance: Evicting a tenant who refuses to or cannot pay the rent may mean a lengthy and expensive legal battle to have them evicted. Legal expense insurance can help by paying for legal advice or the cost of retaining an experienced attorney to help deal with that problem.

The cost of an apartment building insurance policy is determined by your insurance provider and is based on several factors, including:

 

  • The location of your building and the type of building it is
  • The age and condition of the building
  • The cost to reconstruct the building if it is destroyed
  • Your years of experience as a rental property owner
  • The number of rental units you have and the type of occupancy per unit (e.g., professionals, students, or commercial businesses such as retail stores)
  • Your annual and projected revenue
  • The types of coverages you choose for your policy and the coverage limits
  • Your insurance claim history

There are a few measures apartment building owners and property managers can take to reduce the risks they face, including:

  • Regular maintenance should be conducted inside and outside the building, and minor issues should be fixed before they become significant problems.
  • Perform regular cleaning of common areas, such as hallways, lobbies, and stairwells. Address slip-and-fall hazards by maintaining walkways, stairs, handrails and using non-slip materials where appropriate.
  • Install security surveillance cameras and adequate lighting in common areas, parking lots, and entrances.
  • Check and test or hire a licensed professional to check and test your building’s fire alarm and sprinkler systems, carbon monoxide detectors, and security surveillance systems.
  • Ensure fire extinguishers are readily available and in working condition.
  • Hire a reputable, insured landscaping and snow removal contractor to prevent the risk of slips and falls on your property.
  • Hire reputable, insured professionals to check and upgrade the building’s HVAC and plumbing systems annually.
  • Hire a licensed, insured electrician to check and test the building’s electrical panel and systems annually. Ensure each unit is equipped with modern breakers and copper wiring.
  • Require any contractors or service providers you hire to carry liability insurance and ask them to provide proof of coverage (known as a certificate of insurance).

Getting insured is quick and easy!

Complete our 5-minute online application for a free apartment building insurance quote.

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Claims Examples

Coverage

Problem: A kitchen fire in one unit ignites and spreads, causing extensive damage to other units and the building’s common area.

Outcome: Commercial property insurance may cover the repair of damages to individual units and common areas.

Coverage

Problem: A tenant or visitor slips on an icy sidewalk in the winter or a freshly mopped floor in the lobby, is injured, and requires medical assistance.

Outcome: Commercial general liability insurance may cover the injured person’s medical and rehabilitation expenses.

Coverage

Problem: One of the elevators in your building ceases to operate because of an internal mechanical issue.

Outcome: Equipment breakdown insurance may cover repairing or replacing the damaged elevator.

Frequently asked questions

Are my tenants’ personal belongings covered by an owner’s apartment building insurance policy?

No. It’s wise to encourage or require your tenants to carry tenants’ or renters’ insurance. Tenants’ insurance covers damages to their personal property and the liability risks they face. Apartment building insurance, on the other hand, covers the building structure, your business contents, and your liability as the property owner.

Does apartment building insurance cover damages caused by a natural disaster?

Most policies cover some natural disasters like wildfires and windstorms but may exclude others like overland floods and earthquakes. Owners of buildings in high-risk areas should consider additional coverages for these specific perils.

How can I keep the premium for an apartment building insurance policy as low as possible?

Keeping your premium as low as possible requires implementing safety measures (such as security systems and fire alarms), maintaining the property to ensure it’s in good condition and avoiding filing claims, choosing high deductibles, and bundling policies with the same insurer. Annually reviewing and updating your coverage is recommended. A Zensurance broker can help you do that.

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Ready to start? Let’s get a quote!

Protect your apartment building from expensive and unexpected damage or loss beyond your control with a customized apartment building insurance policy from Zensurance. We can get the low-cost protection you need.

Fill out our online application for a free quote. Our knowledgeable brokers will shop the market on your behalf to get the affordable policy you need from one of more than 50 insurance providers in our partner network and tailor it to suit your specific risks.

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