What to Consider
Real estate professionals navigate risks every day, like property damage, tenant liabilities, and changing regulations. Help in protecting your investments and managing exposure requires insurance solutions tailored to your portfolio. We provide customized coverage solutions to help you safeguard assets and maintain compliance.
Property Coverage
Insurance solutions for buildings, contents, and improvements.
Tenant Risk Solutions
Tenant-related risks and dispute support.
Regulatory Compliance
Guidance with compliance and safety standards.
Liability Protection
Coverage solutions for accidents and injuries.
Real Estate Insurance FAQs
How can I accurately calculate Replacement Cost Value for an older apartment complex?
Being underinsured is a common issue for aging properties. Replacement Cost Value (RCV) should generally reflect current labor, materials, and code upgrades, not original build cost.
To help determine RCV:
- Conduct a valuation using recent local construction costs
- Account for code upgrades under Ordinance or Law coverage
- Avoid relying on Actual Cash Value for major structures
- Review coinsurance requirements to prevent claim penalties
You may want to update valuations annually and after major renovations to help protect your investment and avoid concerns in the event of a claim.
How do I lower my loss run frequency to qualify for a better insurance tier?
Carriers may weigh frequency heavily when underwriting. Reducing small, repeat claims may improve your risk tier and premium over time. Focus on high-impact upgrades:
- Install water leak sensors with automatic shut-off valves
- Upgrade electrical panels and remove known problem brands
- Implement preventive maintenance and unit inspections
- Educate tenants on emergency reporting and mitigation
Track incidents by building and system to target improvements that may help demonstrate results at renewal.
Does my General Liability policy cover habitability lawsuits like mold or bed bugs?
Habitability claims may involve pollution or wrongful eviction allegations that are not always covered under a standard General Liability policy.
Clarify these coverages with your carrier:
- Pollution Liability for mold‑related claims
- Wrongful Eviction endorsements for tenant disputes
- Ordinance or Law coverage for code‑required upgrades after a loss
- Environmental Liability for contamination events
Review exclusions and endorsements carefully so your portfolio has protection aligned with real tenant risks.
Does insurance cover tenant damage or loss of rental income if units become unlivable?
Policies often differentiate between tenant-caused damage and covered perils. Confirm how your policy treats negligence and whether Business Income or Rental Value is included. A Trucordia broker can help you review the policy if you are unsure where to find the information.
Look for these items:
- Property coverage for fire, water, and vandalism subject to exclusions
- Loss of Rent or Business Income with appropriate waiting periods
- Civil authority and ingress or egress provisions
- Security deposits and tenant liability under lease terms
Align coverage with lease language and local laws to help streamline claims and recovery.
Do I need special insurance if my building is older, in a high-risk area, or undergoing renovations?
Higher-risk properties usually need tailored endorsements and sometimes separate policies. Age, location, and construction activity can affect underwriting with the carriers.
Consider these with your broker prior to underwriting:
- Builder’s risk for major renovations
- Flood and Earthquake endorsements in applicable zones
- Vacancy endorsements if units are empty beyond policy thresholds
- Updated wiring, plumbing, and roof to improve risk profile
A proactive upgrade plan paired with the right endorsements may improve insurability and premium over time.