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What is multifamily insurance?
Investing in multifamily rental properties requires significant capital and time, and the resources put into these properties should be protected when possible. One way Texas landlords can protect their properties is by purchasing multifamily insurance.
Multifamily insurance is specialized landlord insurance for buildings with two or more units. Compared to other landlord policies, the coverages and limits are adjusted for multiple units.
What Texas landlords should have multifamily property insurance?
Most Texas landlords with multi-unit residential properties should consider multifamily property insurance. This includes duplexes, triplexes, apartment buildings and townhome buildings.
Some landlords might need a slightly different type of landlord insurance. For instance, duplex owners may find a duplex-specific insurance policy. Apartment building owners may choose apartment insurance instead. Multifamily property insurance should at least be considered for all of the aforementioned buildings, however.
Ultimately, an insurance agent who specializes in multifamily and other landlord insurance policies can help landlords decide what type of insurance is best for them.
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What coverages do multifamily property insurance policies make available?
A multifamily property policy offers a range of coverages that can be customized to meet the specific risk mitigation needs of a business. Some of the coverages that are frequently chosen include:
- Commercial Property Coverage: May cover buildings and other structures
- General Liability Coverage: May cover accidents that occur on a business's property
- Boiler and Machinery Coverage: May cover major equipment installed in buildings
- Commercial Contents Coverage: May cover portable equipment kept in buildings
- Backup and Sewer Drains Coverage: May cover plumbing-caused water damage
- Business Income Coverage: May cover certain prolonged losses of income
- Professional Liability Coverage: May cover mistaken advice given by employees to tenants
- Commercial Umbrella Coverage: May provide secondary liability protection for potentially expensive claims
Landlords who have an outstanding loan on their property are often required to carry commercial property coverage, as this helps protect the lender’s interest in the building. Regardless of any coverage requirements, however, all of these coverages are generally recommended in most situations.
Does multifamily property insurance cover floods and earthquakes?
Floods and earthquakes normally fall outside of the protections that multifamily property policies provide. When these are needed, the two perils can usually be covered through another insurance policy. Landlords might get a flood policy on the private market or through the National Flood Insurance Program. Earthquake policies are available on the private insurance market.
How much are the premiums for multifamily policies?
Multifamily policies tend to be reasonably priced considering the protections they afford, but several factors are often considered by insurance companies when determining the rates for these policies. Some of these factors include:
- Location of the property
- Proximity to the nearest firehouse
- Construction material of the building
- Year the building was constructed
- Number of units in the building
- Selected coverages and limits for the insurance policy
The easiest way to find out exactly how much insuring a property will cost is by comparing policy options with an independent insurance agent. Independent agents aren’t beholden to any one insurance company, and can therefore request customized quotes from multiple companies.
How can Texas landlords get multifamily insurance?
If you need help insuring a multi-unit residential real estate property that’s in Texas, contact the independent insurance agents at Ramey King insurance. Our agents will work closely with you to determine coverage and protection needs, and then we’ll help you find the best available policy that meets your particular needs. With our expertise and help, you can have confidence in the multifamily insurance policy that you ultimately select.
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