Real Estate Property Owners

Appleby & Wyman has over 100 years experience in providing apartment building insurance programs for real estate property owners both large and small.  Whether you own a few dwellings across town or have a large, multi-state property schedule, you can trust the Account Executives at Appleby & Wyman to arrange a customized coverage program to fit your specific insurance needs.  Our reputation within the insurance industry gives us clout with major insurance carriers to provide extensive insurance plans at competitive prices. 

Appleby & Wyman recommends all Real Estate Property Owners consider the following coverages:

• Rental Income: This coverage should be written to protect against loss of net rental income that would have been earned or incurred from tenant occupancy of your premises.  It should also include fair rental value of any portion of the described premises which is occupied by you. 
• Boiler & Machinery:  Insures against the sudden and accidental breakdown or explosion of many different kinds of equipment, including boilers, machinery, electrical equipment, pressure vessels, computers, fax machines, and computerized telephone systems.  This type of coverage is also known as “Equipment Breakdown Insurance”.
• Ordinance or Law:  Such coverage should be considered when you own older buildings or buildings that may be subject to various other zoning, land use, environmental or regulatory laws such as those required under the Americans With Disabilities Act.   Ordinance or Law coverage is separated into three categories outlined below:

  (a) Coverage for Loss to the Undamaged Portion of the Building:  Pays for the loss of value of an undamaged portion of the existing building which must be demolished and/or removed to conform with municipal ordinance, code, etc.
  (b) Demolition Cost: Pays for the cost of demolition of the undamaged portions of the building necessitated by the enforcement of building, zoning or land use ordinance or law.
  (c) Increased Cost of Construction: Pays for any increased expenses incurred to replace the building with one conforming to building laws or ordinances, or to repair the damaged building so that it meets the specifications of current building laws or ordinances.

• Flood & Earthquake: Flood coverage is written to provide protection against loss from water damage arising from flooding, surface water, tides, tidal waves, and the overflow of any body of water.  It is important to note flood coverage does not normally cover several types of related water damage, the most common of these being back up of sewer or drains, or below ground water that seeps or leaks through foundations.  Earthquake coverage is used to provide protection against loss due to earth movement including earthquake shocks and volcanic eruption.
• Tenant Relocation Expense:  In Massachusetts, every property insurance contract covering residential buildings with two or more units must provide up to $750 relocation insurance per rental unit for residents or lawful occupants when they can no longer live in their quarters.  This insurance is to reimburse the tenant for reasonable expenses required to find other living arrangements in the shortest possible time. Examples of such expenditures include:

  (a) Renting a truck to transport property to a storage facility.           
  (b) Hiring a moving company.
  (c) Additional living costs incurred while waiting for new living quarters or the repair of existing living quarters, such as: staying in a hotel; eating at restaurants because a kitchen to cook in is no longer an option; or additional telephone expenses sustained as a result of disruption to the current phone service.
  

Other items rental property owners should evaluate are:

• Insurance to Value: Many times real estate property owners do not realize that current building insurance limits listed on their policies are much lower than what the true replacement value is on such properties.  It is important to address this issue with a seasoned insurance professional to avoid suffering co-insurance penalties in the event of a large claim.
• Request Certificates of Insurance:  Property owners should always obtain Certificates of Liability Insurance (such as Liability and Workers’ Compensation) when you have contractors or other vendors working at or on your premises. 
• Recommend Tenants Insurance:  Recommend to your tenants that they purchase Renters Insurance to adequately protect their personal property and personal liability exposures.   
• Identify Potential Liability and Workers’ Compensation Exposures:  In the event you have a commercial or retail tenant, it is imperative you obtain certificates of Liability and Workers’ Compensation coverage from them in which you (the landlord) are named as additional insured.