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Real Estate Property Owners

Neighborhood apartment buildings have been a key part of our agency’s business since our beginnings 100 years ago. Now more than ever, property owners - both large and small - struggle to find affordable insurance protection.

Our team of specialists work with real estate property owners like you to customize an insurance program to meet each of your individual property needs without breaking the bank.  From boiler and machinery, to loss of rental income, to flood/earthquake, tenant relocation, liability, and workers compensation, Appleby & Wyman knows not only the marketplace but also the complexities and challenges of your business, and of course the best solution to minimize your risks.

Our reputation within the insurance industry is second to none and is highly regarded by the many prominent insurance carriers we do business with.

 

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 

This coverage 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 as outlined below:

  1. Coverage for Loss to the Undamaged Portion of the Building
    Pays for the loss of value of an undamaged portion of the existing building that must be demolished and/or removed to conform with municipal ordinance, code, etc.
  2. 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.
  3. 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 which is the 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:

  • Renting a truck to transport property to a storage facility
  • Hiring a moving company
  • 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 available
          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:

As a property owner, you should always obtain Certificates of Liability Insurance (such as Liability and Workers’ Compensation)in the event 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.