As the landlord of a multifamily property, you will have different insurance needs than a traditional homeowner. Although there are some similarities between the two types of coverage, there are also a few important variations you must understand when buying a rental property insurance policy. Knowing it can be a challenge to select the right plan, the agents at K.L. Smith Agency in Willimantic, CT, provide valuable information and advice for finding the most suitable coverage. Below, they answer some frequently asked questions about insuring a multifamily property.

4 FAQs Regarding Insurance for a Multifamily Property

1. Why Is Insurance Necessary for Multifamily Properties?

Owning a multifamily property comes with quite a few risks. Not only is it wise to keep the structure covered because of the possibility of damages, but the more tenants you have, the higher your chances of facing a liability claim at some point. 

2. What Should a Rental Property Insurance Policy Include?

An adequate rental property insurance policy should include liability, property damage, and loss of rental income. Additional coverage options you may consider are contents insurance, rental guarantee, and natural disaster. 

3. Are Landlords Responsible for Contents Insurance?

You are not responsible for carrying contents insurance for the belongings of your tenants, but it is encouraged you require renters insurance in your lease agreement.  Tenant homeowner policies include liability coverage.  We suggest a minimum of $300,000. liability coverage. If you live on-site or have a sizable investment in property furnishings, it’s best to have contents insurance for your own items.

4. Is There a Way to Save on Premiums for Rental Property Insurance?

Many insurance companies offer a variety of ways to save on rental property insurance premiums. You may be eligible to receive discounts if you bundle your policy with your homeowners or car insurance, install safety and security features, and choose a higher deductible.  

Investing in a multifamily property is a big financial commitment, so having the proper insurance coverage is vital in protecting you from potential disasters. To learn more, contact K.L. Smith Agency at (860) 423-9294, or visit them online for additional information on the full range of products available.