The best insurance for apartment complex owners is a policy built for apartments. It covers the buildings at replacement cost and carries liability limits that fit your unit count. It also replaces lost rent after a covered loss and meets your lender's written rules.

Most coverage problems hide in the fine print.

At Moore Multifamily, we work only with apartment owners and investors across the Southeast, on communities of 10 to 500 units. Here's what we tell them to buy.

The 4 coverages every apartment complex needs

Start here. Everything else is an add-on.

Property insurance

Property coverage pays to rebuild after a fire or storm. Ask for replacement cost valuation, which pays what rebuilding costs today. Actual cash value subtracts depreciation, and that hurts most on an old roof.

Check the coinsurance clause too. If you insure the building for less than the clause requires, the carrier cuts every claim payment, even a small one.

General liability

General liability pays when someone gets hurt on your property and sues. A guest slips on a wet stair. A child gets hurt at the pool. Fannie Mae and Freddie Mac, the agencies that back many apartment loans, both want at least $1 million per occurrence and $2 million in aggregate.

They also want that coverage without sublimits or exclusions for assault and battery, abuse and molestation, animal attacks, and firearms. Plenty of policies exclude or cap those claims, so read that wording first.

Loss of rents

If a fire takes 12 units offline, your mortgage payment doesn't pause. Loss of rents coverage (usually called business income) pays the rent you'd have collected while crews rebuild. At $1,300 a month, 12 units is $15,600 a month. Agency lenders ask for 12 months of income protection.

Umbrella liability

An umbrella sits above your general liability and pays when a claim runs past its limit. Agency lenders set the minimum by unit count: $1 million up to 250 units and $2 million for 251 to 500. I think it's worth pricing a higher limit, because a serious injury claim can pass $1 million.

Add-ons worth quoting in the Southeast

Standard property policies leave gaps. These 4 cover the ones I'd check first.

  • Flood. Property policies exclude it, so a flood can take your ground floor while the policy shrugs. Lenders require flood coverage on income-producing buildings in FEMA zones that start with A or V.
  • Wind and hail. Agency lenders allow a percentage deductible up to 5% of insured value. On a $10 million property, that's $500,000 out of your pocket before the carrier pays.
  • Ordinance or law. This pays to rebuild to current code. Lenders require it when a building doesn't conform to today's zoning or building rules, and older buildings often fall in that group.
  • Equipment breakdown. This covers sudden failure of boilers and central HVAC. Lenders require it for buildings that run those systems.

What lenders check on a Fannie Mae or Freddie Mac loan

Both agencies updated their insurance rules in 2025, and the rulebooks now read much alike. Here are 4 items from the checklist:

  • Limits of at least 100% of insurable value (your rebuild cost) on a single building, and 90% on a property with several buildings.
  • Property deductibles capped at $50,000 when insurable value is under $10 million, and $100,000 at $10 million or more.
  • A carrier rated A- or better by AM Best (Fannie Mae adds a financial size category of VII or better).
  • The lender named as mortgagee and loss payee on the property policy.

Fall short on any of them and the lender can buy coverage on your behalf. That's lender-placed insurance. It often costs more, and it protects the lender first.

HUD loans follow HUD's own rules, and any lender can add more. Read your loan documents before you renew. Freddie Mac posts its rules on its multifamily insurance compliance page, and Fannie Mae publishes its in the Multifamily Selling and Servicing Guide. We specialize in this work, and you can see how we handle it on our lender compliance page.

How to choose among multifamily insurance companies

Multifamily insurance companies (the carriers) write the policy and pay the claim. Some carriers avoid apartments. The ones that write them price on roof age, construction, location, and claims history.

Check the financial strength rating first. AM Best grades insurers on their ability to pay claims, and agency lenders require A- or better. Then ask your broker for claim references on buildings your size. A rating tells you the carrier can pay. References tell you if it does.

Why work with a multifamily insurance specialist

A multifamily insurance specialist is a broker or agent who places apartment properties every day. That volume shows them which carriers want a 1985 wood-frame building and which ones pass. It also means they already know the lender checklist.

I think a specialist matters most when a lender is involved or the property sits in wind or hail country. A single 10-unit building with no loan can do fine with a good local agent.

Before you hire anyone, ask 4 questions. How many apartment properties do you insure? Which carriers do you use for buildings my size? Who handles lender certificates and renewals? What happens on your end when I file a claim?

How to compare apartment insurance quotes

Put the quotes side by side on identical limits. Then convert each percentage deductible into dollars. On a $10 million property, 2% is $200,000 and 5% is $500,000. Weigh that gap against the premium savings.

Ask for the full policy form too. Quote summaries often leave out exclusions.

Frequently asked questions

How much does insurance for an apartment complex cost?

It depends on roof age, construction type, location, claims history, and insured value. Any price quoted without those details is a guess. Ask for the premium per unit and per $100 of insured value so you can compare quotes.

Does the owner's policy cover tenants' belongings?

No. Your property policy covers the buildings, and your liability policy covers injury claims against you. Tenants need renters insurance for their own belongings.

Can I insure several apartment properties on 1 policy?

Yes. A blanket policy covers multiple properties under shared limits. Expect the lender to cap blanket property deductibles at $250,000 and to ask for a statement of values.

When should I start shopping for renewal?

About 90 days before renewal. Larger properties need time for carriers to quote and for you to compare.

If you'd like a second set of eyes on your current policy, request a quote from Moore Multifamily.