In the past couple of years, apartment buildings have been complex businesses to cover. However, due to fires that damage the structure, injuries to tenants in the building, and lawsuits relating to lead-based paints, apartments are witnessing an increase in insurance-related concerns.

The issue to consider is that having many residents in your house is a legal liability risk and a significant risk to the building.

The insurance companies that can offer coverage for apartments are becoming increasingly specific. These are typically small, unorthodox insurance companies specializing in apartment building insurance. In the end, the pool of insurance firms willing to cover apartments decreases yearly.

Understanding the insurance market for apartments is essential to understanding the intricacies of an insurance policy for apartments and avoiding landmines.

What Kind of Insurance Do Apartment Building Owners Require?

Each apartment or building is unique, and there’s no set listing of insurance policies for you to purchase. It is essential to talk to an experienced insurance agent who will help you determine what your building may require and what it doesn’t.

In general, these are the policies we recommend to most apartment owners.

General Liability

General insurance on liability for apartment owners protects the total liabilities you are exposed to when renting out your apartments. It covers damage to property that you cause to other people and bodily injuries that happen within your premises.

As an example, we faced an insurance claim in which the tenant was able to use a metal fan in their closet. As they were getting dressed, the tenant’s hand snagged the ceiling fan. It was a case of bodily injury under general liability insurance. It caused a significant cut which resulted in some medical expenses.

In addition, we’ve heard of claims that stovetop cooking caused a sensitive automated sprinkler. It released water throughout the area of the tenant’s home and destroyed numerous electronic devices. The damage gets deemed property damage to other people in the general liability policy.

Commercial Property Insurance

Property insurance, also known as the policy of insurance that protects against damages to buildings, is essential for most homeowners of apartments. It covers storms, fires, hurricanes, vandalism, theft, and many other events that could cause damage to your building.

The legal environment for owners of apartments is different; property insurance is usually the most costly annual purchase. If you reside on an ocean, this will be the most expensive insurance policy you buy each year by a considerable margin.

Why Is It So Expensive?

These vast and costly structures are exposed to the elements every day. They are also vulnerable to tenants who forget to shut off the oven or let the pipes for water freeze. Insurance for apartment buildings gets inundated with a large number of large claims. Apartments are among the most profitable forms of businesses that insurance companies can write, and this should tell the owners of flats how vital protection is!

However, plenty of choices are available, most of which are focused on addressing the problems of homeowners of apartments and are steadily addressing the issues of the market over the past couple of years.

In short, some choices are available to you if dealing with an insurance professional.


Whether you own a single apartment building or a complex with 1,000 apartments, you need an insurance agent who is familiar with apartment complexes and has access to specialized insurance companies.

Suppose you own a smaller apartment and want to get started with an online quote. However, contact Commercial Insurance Ottawa at (613) 454-5640 or email to have a larger structure or several buildings. Our experts can guide you with getting quotes and choosing the best insurance plan for your company.