An Apartment Insurance Program valuation should done yearly based on three areas: Price, Coverage and Service. If you have the best PRICE  for the COVERAGE you need and receive the SERVICE you require, then you may have a great insurance program in place. The most common valuation we see is price shopping, however I believe the real consideration should be coverage and service!    

In evaluating your current policy on PRICE, there are many schools of thought. Some use a cost per door valuation (premium/# of doors), some use cost per square foot (premium/total square feet) and I am sure there are many others. In the industry, we review TIV, total insurable value and the “effective” rate of insurance you are paying. By comparing the effective rate to the market rates of insurance, we can determine if you are paying too much for your current coverage. (See www.comcov.com for the online tool R U Paying Too Much?)

In evaluating your current type of COVERAGE, you should work with your current insurance broker to discuss limits, deductibles and types of coverage available in the market place. For most properties, there should be a few companies that will compete for your policy and of course premium. Some common questions to consider are: Are your limits high enough to cover your property? What type of coverage do I have? Are there any coverage concerns you have that may be insurable? Where are the weaknesses of the current policy in force? Always work with your insurance broker to review your options.

The last area of consideration is the SERVICE you receive from your agent and/or brokerage you place your business with. We believe at the end of the day, if price and coverage are similar, service is the differentiator in any product we purchase. As your insurance broker, we work for you. Only you are able to determine what constitutes good service and what is important to you.  

Owning and apartment building is a business. The asset/ buildings incur expenses to keep the revenue/rents coming in. After expenses you would like to see profits. Your Apartment Insurance Program insures your business can withstand the business risk you accept every day as a landlord and building owner. We recommend an evaluation of policy limits and pricing every year to ensure you are covered for the risks you face as a building owner and landlord all year long.

Paul Tradelius

Commercial Coverage