Apartment Building Insurance: How the Renewal Process Should Work

Sadly, many landlords only hear from their insurance partner at renewal time—usually in the form of a bill. We hope this isn’t the case for you because this scenario points to some red flags. First, lack of contact suggests that the broker isn’t updating your policy information with current rent rolls or recent improvements. Second, an absent insurance partner may have your policy on autopilot, renewing what you have instead of researching better options.  

When your broker is actually working for you, the insurance renewal process should look like this. 

Apartment Building Insurance Renewals

Two to three months before your policy expires, your broker should request a policy review. If he or she does, that means the broker is doing a diligent job. If not, your broker might not have your best interests at heart and simply wants you to review your existing policy. Policy reviews should take place every three years unless market developments—such as high inflation or soaring labor and material costs—require immediate action. 

This conversation should take place either in person or over the phone. Together, you’ll discuss the following: 

• Changes to the apartment building—system upgrades, renovations, additions, etc.  
• Factors that affect replacement costs, such as increases in construction materials and labor 
• Current rent rolls to update Loss of Rents coverage 
• Legal changes affecting the property (Remember: The name on the deed must match the name on the insurance policy.) 

Regular communication will give your broker everything he or she needs to ensure you have the right insurance policy for your needs and to negotiate the best rates. 

Insurance Players Come and Go

Sometimes, an insurance company will discontinue the type of coverage you have—often for pricing that’s unfavorable to the company or a lack of buyers. If this happens, your broker should quickly present you with new options. In fact, we at City Building Owners have solutions for New York, New Jersey and Connecticut customers facing policy changes. 

A client once emailed us after receiving a letter stating that her policy was being discontinued. Within minutes, our staff let her know that competitive shopping had confirmed that her current carrier still offered the best rate for her building. The renewal policy was already on its way. 

Her response: “What a relief. Thank you so much for all your hard work. You guys are the best thing about owning a home.” 

Sometimes new carriers enter the market. We’ve helped many owners save money and even improve their coverage for similar premiums. 

The Right Insurance Partner 

You can find insurance on your own, but your best bet is to find a broker who specializes in apartment building insurance and will actively protect your interests. An insurance professional with expertise in this niche market can compare rates and give you the best protection for your investment, your needs and your budget. The right partner can also recommend coverage amounts, based on the following: 

• The condition and age of the mechanical systems and roof 
• The building’s age and location 
• Construction materials 
• Property amenities (e.g., roof deck, gym, common areas, etc.) 
• The building’s fire and security system 

Operating an apartment building is a huge investment that needs to be protected. At City Building Owners Insurance, we are committed to safeguarding your investment year-round. 

If you would like a free insurance review or if you have any questions, call us at 877-576-5200.