Property Insurance Roundtable

Common Exposures and Losses Faced by Multi-Family Complexes (Apartments and Condos)


While multi-family buildings offer many amenities to residents such as maintenance and lawn care, which allow for a simplistic and flexible lifestyle, the insurance policy to cover them are anything but. Apartments and condos are often inadequately insured, and the risk posed for those who own or reside in them is high. For further insight on this topic, please see the corresponding Adjusting Todaarticle: “Multi-Family Complexes (Apartment and Condo): An In-Depth Look at Insuring the Many Exposures and Losses.”

Key Takeaways

  • [01:57] Defining what constitutes a multi-family property.
  • [02:19] How do multi-family exposures differ from typical residential or commercial exposures?
  • [03:13] Why, by law, must multi-family property owners purchase adequate insurance coverage?
  • [04:45] Does preparing a multi-family policy take more foresight and planning than a conventional homeowners policy?
  • [06:54] A 2014 study by the National Multi-Family Council, found approximately 43,267,432 Americans live in rental properties, and a survey by the Insurance Information Institute reported 94,000 fires recorded in apartment buildings the same year; do these figure
  • [08:09] Are rental apartments, condo, and cooperative apartments insured in the same way?
  • [09:29] How are condominium and paired homeowner associations insured? Does it differ from apartment complexes? What two kinds of ownership are available for condos?
  • [13:54] What is the building’s management responsible for insuring?
  • [14:57] What is a unit owner or renter responsible for?
  • [16:53] What will standard building coverages, provided by the Insurance Services Office (ISO) include for a multi-family complex?
  • [17:26] What additional coverages are available for apartments and condos?
  • [21:25] What types of coverage are available to protect owners and residents from disasters?
  • [22:19] What exclusion may arise from the type of coverages previously discussed, and are there additional coverages policyholders can purchase to counteract these exclusions?
  • [25:53] What role does a deductible play in these claims, and how should one select a deductible amount when purchasing a policy?
  • [32:31] What are unique insurance issues for apartments in comparison to condominiums?
  • [36:00] What are lease provisions, and why are they important when processing property insurance claims?
  • [38:45] What types of crime exposures face apartment owners, and is there coverage for this?
  • [42:30] What types of non-residential exposures do apartment building owners face, and are there additional insurances they can purchase to protect themselves from these risks?
  • [44:31] What types of loss control and safety measures can be taken to reduce property insurance and remediation costs?
  • [46:48] What are common problems that come up when adjusting multi-family complex losses? <