Do your clients own a multi-family apartment complex? If they do, they should understand that being a landlord entails lots of risks and challenges. These risks include being sued, property damages, and theft. Your client can protect their property and their business against these risks by getting Commercial Package Insurance NY.
What do your clients expect from this kind of insurance? Here are 5 essential coverages for a multi-family dwelling.
Protection from General Liability
Your clients are at risk of general liability where tenants and visitors can sue them for property damage or injuries. Often, these incidents happen in the common areas. Remember, your clients have to maintain safety in these areas. Anything that happens within these vicinities, they are liable for any sustained damages or injuries.
People could easily sue your client even if it’s not your clients’ fault. Indeed, a simple slip or scrape can injure a person in so many ways. This simple incident can drag your clients to paying out-of-pocket costs that they can’t afford.
However, with general liability insurance, your clients can protect themselves from expensive lawsuits and awards payments.
Coverage on Property Damage
Buildings are prone to damages made by man or natural disasters. Since your client owns the building, they are responsible for keeping it safe for tenants. Furthermore, your clients are responsible for rebuilding or repairing this multi-family apartment complex if it gets damaged.
The most common reasons for building damages include fire, explosions, vandalism, lightning, windstorms, damage from smoke, and flood, among other things. However, property insurance can cover some of these causes.
Although property insurance covers most causes of damages, your clients still have to know the exclusions. Not all causes are covered in property insurance. Depending on the location of the building, this insurance might only cover one or two of the known causes of property damage.
Sometimes, your clients will have to add premium coverage to form a comprehensive policy. Alternatively, they can opt for umbrella insurance, which is also included in this package.
Security of Business Income
There would be times that your clients will experience financial loss due to the building being unlivable. Let’s say their apartment complex is out of commission due to a fire breaking out on one of the floors.
Naturally, your clients’ tenants will need to move out while the building is under repair. This results in income loss that may last for several months.
With insurance, your clients can claim business income benefits aside from the reimbursement of rebuild and repair costs. The income benefits could last until the rebuild is over or depending on the coverage limit.
Extension of Policy Limit
An umbrella policy is useful when your clients exceed their general liability insurance limits. It is essentially important for big lawsuits and will pay for the costs and claims that aren’t covered in the general liability policy.
The great thing about this insurance is your client can have as high as $5M as a coverage limit. Also, it covers claims that aren’t normally included in most standard policies.
For example, your client’s dog injures a passerby. Usually, the general liability insurance doesn’t cover this claim, but umbrella insurance will.
Umbrella insurance is optional. But, getting one would be beneficial especially if your clients own multiple apartment buildings with wealthy tenants.
Assurance of Living Convenience
Your clients will need equipment breakdown insurance if they keep expensive equipment to run some facilities inside the apartment complex. One piece of equipment that is prone to breakdown is the HVAC.
To maintain living convenience, your clients should make sure that this system is always working. Any sudden breakdown can raise complaints from the tenants. With this insurance, your client can easily replace or repair the broken equipment.
Go Beyond the Minimum
Your client sometimes needs comprehensive coverage because the policies mentioned above may not cover other risks. Here are a few policies your clients might want to include and consider.
- Crime insurance (includes coverage from theft committed in your client’s property)
- Employee dishonesty (covers crime committed by your client’s employees)
- Cyber Liability (protects your client from cybercrime lawsuits)
Conclusion
These insurance policies are great investments for your clients and could save them thousands of dollars. An annual premium shouldn’t be their main concern because when your clients face multiple lawsuits due to damage of property or body injuries, they would feel the brunt of paying legal fees and claims. If your clients aren’t careful, these expensive lawsuits can get them paying for years or, worse, a lifetime.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
