@Sandy Sandy @Bhavya P.
At a minimum, you want your policy to include General Liability, Property coverage & Loss of Rents.
Here are very brief explanations of each and what to look for.
General Liability – This covers you against claims of Bodily Injury
and Property Damage. Ideally $1,000,000 per Occurrence.
*Bodily Injury – This is the most common coverage everyone is concerned about and rightfully so. These are the most common types of claims. It can be anything from a tenant tripping on a step, falling from a balcony, a guest or passerby slipping/falling on the sidewalk.
*Property Damage – Example, your building starts on fire, and causes damage to your neighbor. Your ceiling comes down on tenant’s property.
Property – This protects the building from certain causes of loss such as fire, wind, water, etc.
Loss of Rents/Business Income – This coverage replaces your rental income if the building is damaged by a covered loss.
Property coverage highlights,
1) Ideally have Replacement Cost, not Actual Cash Value (ACV). Sometimes on older rentals, ACV may be the only option.
2) Special Form, if they don't offer that, then Broad Form. If they only offer Basic coverage, be aware water and theft claims are excluded
3) Loss of Rents equal to 12 months of income
This is not a complete list, but are generally the most impactful at the time of a claim.
