Insurance for multifamily units

[Samantha Weitzel]

Hello all,

We are in escrow for our first multi unit. 

Other than normal liability is there additional insurance or maybe umbrella policies for the property that you would recommend?

Thanks in Advance

Samantha 

[Joseph Gozlan]

@Samantha Weitzel first, congrats on getting a deal under contract!

Multi unit can be 2-4 and can be commercial 5+ units. it's 2 different types of insurances make sure to talk with the appropriate agent.

If it's a 2-4 units, an umbrella insurance is highly recommended to have on top of the property insurance.

If it's a commercial 5+ units make sure to talk to a commercial insurance agent. The residential agents, most of the time, won't know the appropriate coverage you need and even if they can figure it out the prices will be ridiculous. In the larger properties, the equivalent to the umbrella policy is general liability insurance. Holding the property under an LLC is another form of "insurance".

Couple of things to remember:

1) the bigger the property the bigger the target on your back so protect yourself as much as you reasonably can.

2) DO NOT try to "save" on the policy premium by reducing the medical costs coverage for people getting hurt on your property. That's probably the #1 mistake people do on their insurance policies.

Good luck and congrats again!