Apartment Building Insurance From $85/Month

Apartment building insurance is commercial property coverage built specifically for owners of 5+ unit residential buildings. It bundles three coverages a landlord can't get from a standard homeowners or even a single-property landlord policy: building property for the structure itself, commercial general liability for tenant and guest injuries, and loss of business income (loss of rent) for when the building is uninhabitable after a covered claim.

The "5+ unit" threshold matters because most homeowners and consumer-grade landlord carriers cap out at 1-4 units. Once you cross that line you need a commercial multi-family policy from a specialist carrier like Honeycomb, Steadily, or CoverWallet. They underwrite the entire building as one risk and price for the per-unit exposure rather than treating it as a single-family dwelling with extra rooms.

For a typical 5-10 unit building valued at $1.5M-$3M, expect annual premiums of $1,000-$2,600 (roughly $85-$220/month). The biggest cost drivers, in order:

• Replacement cost. The big number — it's what determines payout if the building burns down. Total premium typically runs 0.5%-1.5% of replacement cost annually.
• Location risk. Wildfire zones, hurricane corridors, hail-prone Midwest counties, and flood zones can double the base rate.
• Building age + construction. Wood-frame buildings before 1980 cost more than modern fire-resistive (Type II/III) construction. Knob-and-tube wiring, old plumbing, and aging roofs are deal-breakers for some carriers.
• Liability limits. Most owners carry $1M occurrence / $2M aggregate; bumping to $2M / $4M usually adds 10-15%. Umbrella policies layer on top for $5M+.
• Claims history. One major claim in 3-5 years adds 15-25%; two claims often triggers non-renewal.

Building owners typically stack these layers:

• Building property. Replacement-cost coverage on the structure, including roofs, foundations, plumbing, and electrical. Required by every mortgage lender.
• Business personal property. Covers anything you own that's not part of the structure — appliances in units, lobby furniture, office equipment, maintenance tools.
• General liability. Pays tenant + guest injury claims. Standard limit is $1M per occurrence; high-traffic buildings benefit from $2M.
• Loss of business income. Pays rent you would have collected while the building is uninhabitable. Most carriers offer 12-24 months coverage; longer rebuilds need extended periods of indemnity.
• Equipment breakdown. Optional but cheap. Covers boilers, central air, elevators, and water heaters. One $20K elevator repair often pays for years of premiums.
• Flood / earthquake. Excluded from base policies — must be added separately or through NFIP / CEA depending on state.