Montana Apartment Building Insurance Policy Information
Montana Apartment Building Insurance. There are definite perks to owning rental property, since the role of landlord can be rewarding from both a financial and personal standpoint. However, landlords take on a lot of risk, which makes owning apartment building insurance an essential part of being in this niche. If you do not have the right type and level of Montana apartment building insurance in place, you put yourself at risk of unnecessary financial problems if anything should go awry.
Apartments are residential structures built to provide living accommodations for multiple individuals or families through a rental agreement called a lease. Apartment buildings can be one story or multi-story, include two through dozens of living units, and may provide services such as clubhouse facilities, fitness center, laundry, parking garages, playgrounds, and swimming pools.
Montana apartment building insurance protects your property from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Understanding The Basics Of Montana Apartment Building Insurance
The biggest concern for any property owner is protecting the property from catastrophic occurrences. While property insurance can be a bit complicated to understand, working with an agent is a good way to discover the nuances of the niche and find out how much insurance you really need for your business. The specific answer to your coverage needs depends on a variety of factors, including where your business is located, the type of construction being insured, and other variables.
In addition, your MT apartment building insurance should also protect you from any liability claims that may arise against you, including lawsuits, and provide coverage for lost rent income that you may experience following a loss covered by your insurance. An experienced agent can help you determine the amount of coverage required for full protection of your business. Some risks you face include:
- Storms, fires, and other types of catastrophic damage to your property
- Injuries to visitors, employees, and tenants
- Vandalism and theft
- Loss from libel and slander
- Advertising liability claims
- Loss of income from rentals
- Lawsuits arising from disgruntled employees and tenants
- Fraud allegations
- Intentional litigious acts by your employees
- Claims of misrepresentation
You can address these risks with a few types of Montana apartment building insurance that your agent can tailor to your specific requirements, based on your business model and other factors.
MT Apartment Building Owners' Coverage
Several types of insurance can be essential for apartment building owners. As an owner of a rental property, you must protect yourself from liability and property risks.
You should protect your commercial property from loss, including loss from apartment buildings and complex buildings such as office space, garages, fences, common areas, storage buildings, and swimming pools. Your Montana apartment building insurance should also cover any types of improvements, such as additions, or any structure that is currently being constructed or erected on your property. In addition, buy sufficient coverage to protect the personal property that is located on your business' premises, including items used for service or maintenance of grounds and buildings. The coverage amounts you choose depend on:
- Your mechanical and roof systems and how old they are
- The building's age
- The building's location
- Whether the building is a duplex, high-rise, or multifamily building
- The construction type
- Whether there is a clubhouse, fitness center, or swimming pool on the property
- Whether or not the building has a fire and security system
Keep in mind that any apartment building insurance you purchase will be subject to a specific deductible should you need to exercise your right to file a claim. This deductible should be carefully considered prior to purchase. You should ask yourself if the deductible should apply to each occurrence or to each building if you own a complex with multiple buildings. This is an important decision when buying coverage.
Consider for a moment that if you own several buildings that become damaged during a storm and you need roof repair, the deductible amount that you pay will be based either on the occurrence itself or on a per-building deductible. If you choose the per-building deductible, then you are responsible for the deductible amount before your coverage kicks in. If you buy a per-occurrence plan, then you will pay just a single deductible, no matter how many buildings become damaged. You should also consider loss-of-income coverage. This type of coverage provides reimbursement for any lost rent income that you experience due to damage or loss that results from a covered peril.
Landlord insurance, or commercial general liability protection, provides a buffer against claims of alleged or actual damage to property or any third-party bodily injury claims brought on by delivery personnel, repair personnel, visitors, or tenants. This can protect your business from any lawsuits resulting from sustained injuries ranging from slips and falls to tripping or injuries on the grounds. Some other possible insurance coverage types to consider include:
- Equipment/machinery coverage. This coverage protects you from the loss of income or damage resulting from covered equipment breakdown. For example, your steam boiler or your mechanical system breaks down.
- Commercial umbrella policy. This coverage provides excess liability protection for any events that occur that are in excess of the liability coverage you own.
- BOP policy. A business owner's policy provides a bundle of coverage for commercial property, business interruptions, and commercial liability all in one.
- Worker's comp. This policy covers employees working on your premises from any work-related injury or illness.
- Commercial auto coverage. Any vehicles owned and operated by your business must be covered under commercial auto coverage.
Avoiding Liability Claims
When operating an apartment complex or building, you may find yourself on the receiving end of lawsuits and liabilities. Apartment building coverage can mitigate the financial loss you experience, but there are ways to lower your chance of being subjected to claims to start with. Avoid claims by:
- Owning an appropriate amount of coverage.
- Keeping your property in good shape.
- Eliminating any environmental hazards in the apartments you rent.
- Keeping security a top priority.
- Avoiding discrimination when renting out units.
- Respecting tenant privacy.
- Letting tenants know of any potential dangers.
Finding the Right Policy
The unique circumstances of your business require unique coverage. You face particular risks when operating your business. Find an agent who is adept at working with business owners just like you to tap into an excellent resource for getting the coverage you need.
Montana Apartment Building Operators Risks & Exposures
Property exposures are related directly to the number of apartment units. Ignition sources are from the electrical wiring, heating, air conditioning, and cooking systems. Older buildings should have wiring, heating, air conditioning, plumbing, and roof updated.
If the building was converted from a prior occupancy, it should meet all current residential building codes. Each apartment unit may have a separate heating system, or there may be a boiler building to supply heat to all units. All systems must be properly maintained on an ongoing basis. There should be hard-wired smoke/fire alarms in all units and common areas.
If alarms are battery-powered, there must be documented records of periodic maintenance. Housekeeping is critical if there is a central laundry area. Washers and dryers must be properly maintained. Items provided by the building owner, such as kitchen or laundry appliances, may be stolen by tenants or outsiders.
Premises liability exposure can be high due to the number of tenants and guests visiting the property. All buildings should meet life safety codes and be in compliance with codes on smoke and fire detection, fire extinguishers, and carbon monoxide detectors. Lead exposure, particularly on windowsills, must be considered if the building was constructed prior to 1980.
To prevent slips, trips, or falls, all premises must be well maintained with floor coverings in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well lighted, marked, and in good repair. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and fall. Balconies should be regularly inspected and maintained. Locks should be rekeyed after a change in tenant to prevent unauthorized access.
Swimming pools, exercise facilities, and playgrounds should be limited to tenant use only, and be properly maintained. There should be a maintenance activity log to document the owner's response to tenants' needs. Personal injury losses may occur due to alleged wrongful eviction, invasion of privacy, or discrimination. Clear guidelines for tenant acceptability are important.
Workers compensation exposures are usually service, janitorial, or maintenance-related. Back pain, hernias, sprains, and strains from lifting and working from awkward positions are common. Skin and lung irritation can result from working with cleaning chemicals and paint. Interaction with tenants or guests can be difficult. Employees should be trained in dealing with difficult situations. Animals owned by tenants can bite or kick workers.
Inland marine exposure comes from accounts receivables for rents due, computers, contractors' equipment for lawn and maintenance tools, and valuable papers and records for leases, mortgage, and tenant's information. Duplicates of all data should be made and kept off premises for easy replication in the event of a loss. Tools and maintenance machinery should be periodically inventoried and kept in a secured area after hours.
Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees. Rents are generally collected the first of the month, and there may be large amounts of cash on hand. Payments by check are the preferred method for collecting rents.
Deposits should be made promptly with appropriate security provided. Monetary transactions must be controlled through the use of receipts and regular monitoring. Access to apartments must be limited to those authorized to do so, and access to master keys must be strictly controlled. Units should be rekeyed when there is a change in tenant.
Commercial Auto exposure is generally limited to hired & non-owned for employees running errands. If there are owned vehicles, such as those used to service units, any driver should have a valid driver's license and acceptable MVR. Vehicles must be maintained and records kept in a central location.
Montana Economic Data, Regulations And Limits On Commercial Insurance
Thinking about starting a new business? Already own a successful business and want to expand your operations? Whatever the case may be, if you want to experience as much success as possible, you are going to want to ensure you choose the best possible location for your specific industry.
No matter how outstanding your goods and services may be, if the area where your business is located doesn't offer a healthy climate that will support your company, chances are you'll struggle to succeed.
If you are thinking about opening up a business in Montana, being familiar with the state's economic trends can help you determine if it's a good location for you. It's also wise to know what type of insurance you'll need to invest in so that you can plan ahead.
With that said, below, we provide an overview of the economic trends in the state of Montana, as well as the commercial insurance requirements for business owners in the Treasure State.
Economic Trends For Business Owners In Montana
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Montana was 3.4%; that's 0.1% lower than the national average, which was 3.5% at the same time. This rate remained steady throughout the entire 2019 fiscal year, and it is expected to either continue remaining steady or improve in coming years, according to economists.
Unemployment rate is a vital statistic for business owners, as it indicates the job market of a location, which is a strong determining factor in the success of businesses in the region.
There are several areas throughout the state of Montana that are seeing economic booms and where businesses are flourishing. Among those locations include the following cities and the areas that surround them:
- Great Falls
Several industries are seeing substantial growth in MT; however, there are particular sectors that are really thriving in Montana. Among those sectors include:
- Advanced manufacturing
- Hospitality and tourism
- Information technology
- Oil and gas production
- Retail development
If you are considering opening a business in any of the above-mentioned areas, your chances of success in Montana are favorable.
Commercial Insurance Requirements In Montana
The Office of the Montana State Auditor, Commissioner of Securities and Insurance regulates insurance in MT. Montana mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Montana requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Montana also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Commercial Property Insurance Policy Coverage Forms
- Condo Association
- Contractors Equipment
- Duplex Rental Property
- Electronic Data Processing Equipment
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Jewelers Block
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Safeco Landlord Insurance
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
- What Are Commercial Property Insurance Endorsements?
Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.
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