What is the best multifamily property insurance for large apartment complexes?

The best multifamily property insurance for a large apartment complex pays to rebuild every building and meets your lender’s terms. Price comes after that.

A 300-unit property has many buildings, a clubhouse, a pool, and a big stream of rent. One bad loss can touch all of it.

Start with replacement cost

Replacement cost pays what it takes to rebuild today. Actual cash value subtracts depreciation, so a 25-year-old roof gets paid like a 25-year-old roof.

Base your insured value on a current rebuild estimate. Fannie Mae wants at least 100% of insurable value on a single building and 90% on a property with several buildings. Our multifamily property insurance starts from that number.

Ask for special form

Special form covers every cause of loss unless the policy lists an exclusion. A named-perils policy covers only what it lists. Fannie Mae requires special peril coverage, and I’d want it on a large complex anyway.

Add loss of rents

If a fire takes a building offline, the mortgage still comes due. Loss of rents coverage pays the rent you can’t collect while you rebuild.

I’ve seen it missing. On one Georgia property, the owner’s policy left out both loss of rents and liability coverage. We replaced it with a compliant program that included $2M general liability, and the owner saved more than $10,000 a year.

Ask how many months your coverage lasts. Your lender sets a minimum, and a big rebuild can run long.

Check the wind and hail deductible

A percentage deductible can wipe out any premium savings. On a property insured for $10 million, 7.5% is $750,000.

Fannie Mae and Freddie Mac allow up to 5% for wind and hail and up to 7.5% for named storm. Check your quote against your loan, or let our lender compliance team do it.

Add ordinance or law coverage

Older buildings have to meet today’s building codes when you rebuild. Ordinance or law coverage pays for that upgrade. Lenders often require it.

Choose blanket or scheduled limits carefully

A blanket policy shares one limit across all buildings. A scheduled policy gives each building its own. Your lender may require each building to carry 100% of its value, so ask before you pick.

Look at the carrier and the market

HUD loans require a carrier rated B+ or better by AM Best. Even without that rule, I’d want a carrier with a record of paying claims on time.

Markets price large portfolios differently, and a second look can change the number. One investor came to us less than 10 days before renewal, after a big rate increase on a 9-property portfolio with 700+ units in North and South Carolina.

We restructured the coverage and found markets that matched the prior year’s premium. Key deductibles and terms got better too.

Keep liability on its own policy

Property insurance covers your buildings. Injury claims from the pool or the parking lot go to general liability, and most lenders require both.

Get a quote that shows the details

Send us your building list and your loan’s insurance requirements through our quote form. You’ll hear back within 24 to 48 hours.

Frequently asked questions

What is the best multifamily property insurance for large apartment complexes?

The best policy pays full replacement cost on every building, uses special form coverage, includes loss of rents, and meets your lender requirements. Compare quotes on those terms before you compare price.

How much property insurance does a large apartment complex need?

Fannie Mae requires at least 100% of insurable value for a single building and 90% for a property with several buildings. Your loan documents can ask for more, so check them first.

Does multifamily property insurance cover loss of rents?

It can, if the policy includes that coverage. Loss of rents pays the rent you cannot collect while a covered loss keeps units empty, and your lender sets the minimum number of months.

Is general liability part of multifamily property insurance?

General liability is a separate coverage, though many carriers package the two. Property insurance pays for damage to your buildings, and general liability pays for injury claims from residents and visitors.

Stuart Moore is the key agent at Moore Multifamily in Gainesville, Georgia. The firm works only with apartment owners and investors across the Southeast.