The Must Know Insurance Types as a Multifamily Real Estate Investor

Property Insurance

Covers damage to the property. Usually this is your biggest insurance item expense. It is accounted for in the insurance category on the financials.

• Hail damage

• Weather damage

• Water damage

• Fire damage

• Etc.

General Liability Insurance (GL Insurance)

Covers the owner for potential costs incurred not directly related to the property value. It is accounted for in the insurance category on the financials.

• Being sued by a tenant

• Someone falls / gets hurt on the property

• Etc.

Renter's Insurance

Insurance that mostly relates to the unit condition itself. It is accounted for in the general and administrative expense category for the owner's expense. Then there is an offsetting 'Renter's Insurance' item in the other income category for when the tenants pay the fee.

• Insures against a tenant damaging the unit past the security deposit amount

• Etc.