How Many Policies Should I Carry on my Multi-Unit Property?

Insurance for a multi-unit property is much different than for your own home and you want to make sure you have complete coverage so you should carry four types of coverage: Property, Rental Income, General Liability, and Umbrella Liability.

Property covers just that – the physical property itself. Property may or may not cover removable items within so check your policy if you need things like appliances covered as well.

Rental Income is insurance in the event that a major event occurs and the unit becomes uninhabitable. If your unit can’t be lived in while repairs are done, lessors are not required to pay rent – but you might still have a mortgage payment. There are some limitations based on how long it takes to complete the repairs and fair market value of the rent payment. Talk to your broker to find the coverage that makes sense for you.

General Liability covers common business risks like customer injury, property damage and damages from advertising or liability claims from people outside your business. It is not usually required by law but it’s essential if you work with the public – or have showings of property to the general public.

Umbrella Liability is just that – an extra umbrella of coverage if your general liability is not enough to cover damages or costs from a lawsuit.

While it might seem excessive to carry four different types of coverage, remember, they each cover a different part of your business. It’s best to make sure you have complete coverage – and protect your assets for the long haul.