If you own a multifamily building, there are a number of things to worry about, ranging from finding tenants to collecting rent on time. Duties like caring for the building, performing routine maintenance, and making sure that all of the utilities are running properly are also items on your list.
Dealing with flood damage? That’s not on the list, but it needs to be, because even a small leak can turn into a very damaging large in no time at all. Thankfully, you have insurance, right? But what kind of water damage coverage do you need? Here are some great options to explore.
Common Flood-Related Damages That Insurance Covers
Your current multifamily structure insurance plan often covers a number of water or flood-related damages, including burst pipes and supply lines, accidental sprinkler discharges, and even sudden appliance leaks, should a water heater fail. It may also cover water due to storm damage, like if the wind pulls off some of the shingles, causing the roof to leak.
Common Exclusions and Limitations
In case you haven’t noticed, these are very specific things that are unrelated to flood damage from living on a flood plain. You need special flood insurance for those instances. Here are a few other things that aren’t included in your standard building insurance coverage:
- Damage from long-term, hidden leaks
- Water resulting from wear and tear, corrosion, or the results of poor or ignored maintenance
- Leaks from an aging or un-cared-for roof
- Mold from frequently ignored water damage or slow leaks
- Cleanup after a sewer or drain backup caused by a clogged sewer pipe
Multifamily House Insurance and Related Complications
When it comes to multifamily homes, it can be tough to know who is responsible for certain things. For example, you, as the owner of the building, have insurance that covers the main structure and many things related to it, like the common areas. However, your tenants need to have a renter’s insurance policy to cover their personal belongings. Make sure to check the fine print in order to avoid discrepancies.
Another thing to consider is maintenance. Who is in charge of specific improvements or maintenance? What falls on the tenant versus the owner or landlord? By having a list of these routine or emergency maintenance tasks that specifies who is to handle them, as well as a way to ensure that they are done, you can avoid many of the potential things that lead to flooding.
How to Help Mitigate the Situation
Regardless of who is in charge of the maintenance, there are certain things that should be done during a flood or in order to prevent one. All of these will make your insurance company happy, making it more likely that your claim will go through. What are these things?
- Having a shut-off strategy should a flood occur
- Holding routine inspections of values, pipes, and more
- Instructing your tenants to report leaks immediately
Have Questions? Contact Charlotte Insurance
Want to learn more about water damage and flood related policies? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your building needs.