Apartment Building Insurance for Property Owners
Madison Avenue Insurance Group has over 20 years of experience writing insurance policies for apartment building owners. We specialize in finding creative coverage solutions for complex insurance needs, including challenging properties and difficult-to-insure apartment buildings.
- Expert team of independent insurance agents
- Serving owners in Washington, California, Idaho and Oregon
- We work with the leading insurance carriers
- Apartment buildings of all types and sizes
- 20+ years of experience helping property owners
- We insure older construction
- We can handle property vandalism, unforeseen events and more
- We can help Non-Renewed policies
- We can help if “black-listed” for faulty panels
- We can help even with prior losses
We are constantly looking for new and creative ways to provide the best options available for our building owners. We are open for new business and have insurance options for you!
Madison Avenue Insurance Agents can Help Property Owners for Difficult-to-Insure Apartment Buildings
We can work with insurance carriers to help address non-renewals because of the building’s age, electrical panels, prior claims, and even underwriting challenges. If you’re a property owner struggling with a renewal because of the building age, location, construction details or loss history Contact an Agent Today.
We are now open for business in California!
Insurance Services by Madison Avenue, our new California division, provides apartment building insurance throughout California, protecting property owners and lenders alike. Our highly skilled agents specialize on apartment complex insurance policies for California, Washington, Oregon & Idaho.
Partner with Insurance Service by Madison Avenue for your Apartment Insurance Coverage in California. Connect with one of our team members today.
Our insurance specialists know the greater Los Angeles area – from Palm Beach, San Diego & Newport Beach, to Laguna, Huntington and Long Beach, to Torrance, Santa Monica to Santa Fe Springs, Malibu, Thousand Oak, Coachella Valley and Ventura.
WE CAN HELP!
Why are apartment buildings with Zinsco, Federal Pacific and Challenger electrical panels being non-renewed?
DESIGN Flaws – Insurance companies and the Consumer Product Safety Commission consider Federal Pacific Electric panels dangerous. When tested, Federal Pacific Electric Panels are hazardous due to age and faulty components with higher failure rates. The breakers have been shown not to trip, causing the panels to catch fire. Iin the production of the Zinsco panels, there was a particular flaw. A specific aluminum alloy was used that can oxidize. Challenger electrical panels have been known to overheat, which are hazardous and possibly lead to fires.
Increased Energy Demands – Modern buildings have increased energy demands, which can exacerbate a failure in older electrical panels.
Electricians and insurance companies recommend replacing electric panels over 40 years old, mainly where aluminum or ungrounded wiring exists.
Apartment Building Insurance Coverages FAQ
The commercial property insurance market has continued to tighten in recent years. Market cycles are nothing new to the insurance industry; however, the hardening in the commercial real estate market to the degree of which we see it is unique both due to its persistence and severity. We are seeing a combination of restricted terms, diminished coverage, increased rates and greater underwriting scrutiny unlike anything in recent memory. See Our Commercial Tenant Lease Insurance Requirements Checklist PDF
In a word: unprofitability. Insurance for apartment building owners had already been tightening up more notably than other casualty lines mainly due to years of underpricing in the preceding soft market. And as standard carriers have left the space for most properties over 25 years old, the resulting capacity decrease has exacerbated difficult market conditions. At the same time, loss costs have continued to climb, driven by social inflation and third-party litigation funding.
Contact us Today to discuss your portfolio needs.
- Actual Cash Value (ACV) Pays out for property damage at the cost to repair or replace less depreciation. Coverage is valued “as is”.
- Replacement Cost (RC) Pays for the cost to repair or replace the building and/or contents with new, but like materials.
- Functional Replacement Cost (FBV) Pays for the cost to repair or replace the building and/or contents with like but lesser quality materials.
- Guaranteed Replacement Cost (GRC) Pays the cost to repair or replace the building and/or contents event if it exceeds the coverage listed on the policy.
- Crime and Vandalism Scores
- Age of roof and construction type
- Age and type of electrical panels
- Age and type of plumbing
- Age of heating system
- Insurance claims history
- Overall maintenance history of the property
- Fire protection systems (Sprinklers or automated fire alarms)
What Are the Different Insurance Policy Coverage Forms?
Commercial apartment building insurance policies typically offer three coverage forms: Basic, Broad, and Special. Each policy type provides a different level of protection for your multifamily apartment building.
You can find your policy’s coverage form on the declarations page of your insurance policy. It should also be identified in the insurance proposal you review before purchasing coverage.
Understanding these differences is important because choosing the wrong coverage form could leave your property exposed to unexpected losses in certain events.
Basic Form Insurance Coverage
The Basic Form provides the most limited coverage of the three options. It covers only the specific risks, known as “Named Perils”, listed in the policy. If a loss is caused by a peril that is not listed in the policy, it generally will not be covered.
Commonly covered perils could include:
- Fire and lightning
- Windstorm and hail
- Explosion and smoke
- Vandalism, Riots, etc.
- Aircraft or vehicle damage
- Sinkhole collapse or Volcanic activity
Apartment Building Insurance Done Better
Well-maintained multi-family apartment buildings with updated systems and favorable claims histories may qualify for more competitive pricing for insurance rates. Every property is different, and insurance costs depend on dozens of factors such as well as the insurer’s underwriting rules and guidelines.
That’s where our experience will make a difference for you.
Madison Avenue Insurance Group has over 20 years of experience helping apartment building owners navigate complex insurance needs. Our independent agents help identify the best coverage options that fit your property and explore solutions for challenging insurance situations.
Looking for better insurance options for your apartment building? Contact a Madison Avenue Insurance Group agent today to discuss your property’s needs.
Apartment Building Owners’ Association Resources
California Apartment Association
Rental Housing Association of WA