Guide to Selecting California Apartment Owner Insurance for Property Safekeeping

Insurance by Castle - Guide to Selecting California Apartment Owner Insurance for Property Safekeeping

Entrepreneurs come in many forms.  

Did you realize that owning rental property such as an apartment places you in this category?  Now that you’re aware, shifting your mindset will change how you view these investment properties.

Protecting your business and the assets contained within should be a top priority.  We want to help you find the right coverage for your apartment building.  

Read on…

What Does Apartment Owner Insurance Cover?

Naturally, your individual business deserves a personally tailored policy.  But outside of some minor tweaks, you can expect apartment owner insurance to cover:

  • Income lost during any repairs
  • Legal counsel and compensation expenses from a tenant injury
  • Property damage from a natural disaster or peril

When a natural disaster damages any part of your investment, stricter building codes increase the cost of the rebuilding process.  Stress in complying with these laws and ordinances becomes an afterthought when insurance for apartment owners comes into play.  

Consider those extra costs covered!

Accidents happen.  Perhaps a renter receives an injury and sues you to cover their medical expenses.  If the judge finds you liable, hiring a lawyer and paying for a claim will fall under the umbrella of this policy.

Whether wreckage is man made (tenant) or natural (fire), you’ll also be guarded from what could be expensive out of pocket costs.

Operating as foundational tenants for this type of coverage, a customized policy will take into consideration more specific risks and concerns.

But having a general idea of what to ask for will aid your search as you seek the ideal level of security.

Do I Need Apartment Owner Insurance?

In the short term your focus will most likely be on keeping expenditures low to increase your property’s ROI.  

That’s totally understandable, but owning a residence you don’t live in can present unique challenges.

Some possible scenarios:

  • Displaced tenant is unable to pay rent for months after a catastrophic event
  • A potential tenant is injured during a walkthrough of the apartment

Costs during property repairs include the work itself, but don’t forget the drying up of your revenue stream…that monthly rent!

When you’re trying to attract new tenants, there could be many visits before you find the right fit.  

Picture one of those people tripping over an electrical cord and injuring themselves. Unforeseen and expensive, this incident can be covered under the safeguard offered via coverage.  

Mortgage lenders usually require any owner they work with to have insurance in place.  

So even though there isn’t a legal requirement to purchase…it may interfere with moving forward on acquiring desired properties.

If you do purchase insurance for apartment building owners, regular premium payments may  be tax deductible.  That’s good to keep in mind as you track your business expenses over the course of the year.

Apartment Owner Insurance and Insurance by Castle

For over 30 years, Insurance By Castle has been providing apartment owner insurance in Redwood City, San Mateo, and surrounding areas throughout California for over 30 years!

Ours is a name that’s trusted and backed by countless positive reviews and operated independently of insurance providers, allowing us to shop around and secure the most affordable rates for our clients.

Call (650) 364-3664 today or request an apartment insurance quote online. 

We can create a personalized policy for you that includes every aspect necessary to instill the confidence that your investment is well protected.

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