Quick answer: Apartment owners usually need property coverage at replacement cost, landlord liability, loss of rents, and often an umbrella. Lenders require the mortgagee clause and replacement-cost limits. When standard carriers non-renew, specialty markets and the California FAIR Plan with a DIC policy can fill the gap.
Reviewed by Jason Ayala, licensed agent (CA #0G67764) · Updated October 2026
Designed to protect the building owners from any type of liability claims and property loss. This policy protects you from from financial loss, damage, liability, and business interruption that can result from unforeseen situations including theft, disaster, and breakage. The insurance is based on the type of apartment you own. For example, if you have 4+ unit apartment then you will have to get insurance for 4+.
It can sound complicated. At Pierce, we offer a customized solution to the specific requirement of our clients. This is done by first understanding their requirement and analysing what they need.
Builders and Contractors have very special needs. They are considered by the insurance industry as a high risk due to the many hazards involved with construction.
Generally, a Builder or Contractor needs to carry a Bond (as mandated by the state), a General Liability policy to cover the operations, and possibly Builders Risk for New and/or remodel projects as well as Workers Comp for any of their employees.
See also: Real estate investors · Vacant property & land
How we insure apartment buildings
- Get the lender’s requirements first. Mortgagee clause (ISAOA/ATIMA), replacement cost, deductible and loss-of-rents rules, so escrow isn’t held up.
- Shop standard and specialty markets. Including surplus lines carriers and the California FAIR Plan with DIC in wildfire areas.
- Bind and send to escrow. Binders and evidence of insurance go straight to the escrow officer, usually within a day or two.
- Cover every stage. Purchase, renovation (builder’s risk), vacancy and lease-up on one agency.
Client results: see how we’ve helped other Southern California business owners →
Frequently asked questions
Can I get apartment insurance if carriers are non-renewing in California?
Usually yes. We go to surplus lines markets and, where needed, the California FAIR Plan with a difference-in-conditions policy.
Does apartment insurance cover loss of rents?
When loss of rents (fair rental value) is included, it replaces rent while the building is repaired after a covered loss.