If you own an apartment building, you’ve probably noticed your insurance premium climbing over the last few years. Maybe your renewal came back much higher than expected, or your current insurance company won’t renew your policy at all.
You’re not alone.
Apartment insurance has become one of the most challenging types of commercial insurance to place. While coverage is still available, insurance companies have become much more selective about the properties they’re willing to insure.
What’s Changed?
The biggest reason is simple: apartment buildings have become more expensive to insure.
Construction costs have increased dramatically, water damage claims continue to rise, and liability lawsuits are becoming more expensive. After years of paying large claims, many insurance companies have responded by increasing premiums, tightening underwriting guidelines, or leaving the apartment market altogether.
That’s why owners with little or no claim history are still seeing significant rate increases.
Why Building Updates Matter
One of the first things underwriters look at isn’t the age of the building—it’s the condition of its major systems.
Updated plumbing, electrical, HVAC, and roofing can make a significant difference in whether a property qualifies for coverage and how much it costs to insure.
Plumbing
Water damage is one of the most common and expensive apartment claims. Older galvanized or aging plumbing increases the likelihood of leaks that can affect multiple units.
Electrical
Outdated electrical systems create a greater fire risk. Modern electrical updates often improve both insurability and pricing.
HVAC
Older heating and cooling systems are more likely to fail and can increase the chance of property damage.
Roof
Roof age is a major underwriting factor. Many carriers have roof age guidelines, and replacing an older roof can open the door to more insurance options.
Why Some Insurance Companies Won’t Quote Apartments
Many admitted insurance companies have reduced or stopped writing apartment buildings altogether because the market has become less profitable.
That doesn’t mean your property can’t be insured. It simply means you may need access to specialty carriers that still focus on habitational risks.
Why Experience Matters
Apartment insurance has become a specialized market.
At Barela Agency, we focus on habitational risks and have access to many of the carriers actively writing apartment buildings throughout Washington. Because we understand what underwriters are looking for, we can often identify potential issues before submitting your application and help present your property in the best possible light.
What We’ll Need to Provide a Quote
Having the right information upfront helps us obtain accurate quotes more quickly.
We’ll typically ask for:
- Property address
- Year built
- Number of buildings and units
- Square footage
- Construction type
- Year the roof, plumbing, electrical, and HVAC were last updated
- Current insurance carrier, premium, and deductible
- Five years of loss history or loss runs
- Occupancy percentage
- Recent renovations
- Photos of the property (if available)
The apartment insurance market has changed significantly, but good coverage is still available.
Working with an agency that specializes in habitational properties can make the process much easier. We understand today’s underwriting requirements, have relationships with the carriers still writing apartment buildings, and can help you find coverage that fits your property.
If you’d like a second opinion on your current policy or you’re shopping for better coverage, we’d be happy to help.