Apartment Building Insurance

Apartment owners have a lot at stake: the building, the rental income that funds the mortgage, and liability for the tenants and guests who live there. Pacific Southwest Insurance Services insures multi-family properties of five units and up, from older courtyard buildings in the San Fernando Valley to newer complexes, and shops carriers to find competitive rates in a tough California market.

Get a free quote today. Call (818) 701-1033 or email info@pswinsurance.com. Office hours are Monday to Friday, 9:30 AM to 5:00 PM.

Who We Insure

Our apartment building clients include:

• 5 to 20 unit apartment buildings
• Large apartment complexes
• Courtyard and garden-style properties
• Soft-story buildings (including retrofitted)
• Mixed-use buildings with apartments
• Senior and student housing

Coverage Options

• Building coverage: Repairs or rebuilds the structure after fire, wind, vandalism, water damage and other covered causes.
• Loss of rents: Replaces rental income while units are uninhabitable after a covered loss.
• Landlord liability: Covers injuries to tenants and guests in common areas, stairways, pools and parking lots.
• Ordinance or law: Pays for required code upgrades during repairs, which is important for older buildings.
• Equipment breakdown: Covers boilers, water heaters, HVAC and electrical systems.
• Earthquake coverage: Available on a separate policy. Many lenders require it.

What Affects Your Premium

Every property is different. Carriers typically look at:

• Number of units and year built
• Roof, plumbing and electrical updates
• Soft-story retrofit status
• Pools, gyms and other amenities
• Tenant types (standard, student, subsidized)
• Location and wildfire exposure
• Claims history

As an independent agency, we compare options from multiple insurance companies to find the right coverage at a competitive price.

Why Choose Pacific Southwest Insurance Services

• Family-owned and serving California since 1965, now writing coverage nationwide
• Access to multiple commercial property carriers, including markets for hard-to-place risks
• Fast certificates of insurance and lender evidence of property
• One agency for your property, general liability, commercial auto, bonds and more
• A real person answers the phone and knows your account

Common Claims We See

• Water damage: Leaking pipes, water heaters and washing machine hoses cause many apartment claims.
• Kitchen fires: Cooking fires in units can spread to neighboring apartments.
• Tenant and guest injuries: Stairways, walkways and balconies lead to slip-and-fall claims.
• Common-area accidents: Pools, laundry rooms and parking areas create liability exposure.

Tips for Apartment Owners

• Require tenants to carry renters insurance, which covers their belongings and their liability.
• Replace old water heaters and supply lines before they fail.
• Test smoke detectors and keep fire extinguishers in common areas.

Apartment Building Insurance in California: What Owners Should Know

California has one of the toughest markets in the country for apartment insurance. Wildfire losses, higher rebuilding costs and water damage claims have led many carriers to raise rates, cut coverage or stop writing older buildings. Here’s how owners are getting covered:

• Standard and specialty carriers first. We shop admitted carriers and specialty (excess and surplus) markets before turning to the FAIR Plan.
• The California FAIR Plan as a last resort. The FAIR Plan covers fire, lightning, internal explosion and smoke, with optional extended coverage. In 2025 the state raised its commercial limits to $20 million per building and $100 million per location (California Department of Insurance).
• A difference in conditions (DIC) policy alongside the FAIR Plan. The FAIR Plan doesn’t cover liability, water damage or theft. A DIC policy fills those gaps, and a separate general liability policy covers tenant and visitor injuries.
• Earthquake on its own policy. Standard property policies exclude earthquake, and many lenders require it on older buildings.
• Soft-story retrofits help. Los Angeles and other cities require retrofits on many older wood-frame buildings with tuck-under parking. Completed retrofits can open up more carrier options.
• Updates matter. Carriers look closely at roof age, plumbing (especially galvanized or polybutylene), electrical panels and fire sprinklers. Documented updates can lower your premium.

What drives apartment insurance pricing

Two buildings on the same street can get very different prices. Carriers weigh the year built and construction, roof, plumbing and electrical updates, fire sprinklers, wildfire and brush exposure, the number of units, tenant mix and the building’s claims history. Because pricing swings so much from carrier to carrier, comparing several markets matters more for apartments than almost any other property.

Frequently Asked Questions

My apartment building was non-renewed or cancelled. Can you still insure it?

Yes. Non-renewals and cancellations are common in California right now, and they don’t mean your building is uninsurable. We shop admitted carriers, specialty (excess and surplus) markets and, when needed, the California FAIR Plan paired with a difference in conditions policy. Contact us as soon as you get the notice so there’s time to place coverage before your policy ends.

How much does apartment building insurance cost in California?

It varies widely. Price depends on the building’s age and construction, roof, plumbing and electrical updates, sprinklers, wildfire exposure, number of units and claims history, and different carriers can quote the same building very differently. The best way to know is to have an independent agent compare several carriers. Earthquake coverage is a separate policy.

Is a 4-unit building insured the same way?

Buildings with 1 to 4 units are usually written on a dwelling policy. Buildings with 5 or more units need a commercial apartment policy. See our landlord and rental property page for smaller buildings.

Why is apartment insurance getting harder to find in California?

Wildfire, rising construction costs and water damage claims have made carriers more selective. As an independent agency, we can shop multiple markets, including specialty and excess carriers.

Is earthquake damage covered?

No. Standard commercial property policies exclude earthquake. In California we strongly recommend a separate commercial earthquake or difference-in-conditions (DIC) policy, and we can quote one alongside your property coverage.

Are my tenants’ belongings covered by my policy?

No. Your policy covers the building and your property. Tenants need their own renters insurance, and you can require it in the lease.

Will old plumbing or wiring limit my options?

Older systems, like galvanized pipes or older electrical panels, can limit options with some insurance companies. Updates help, and we work with markets that insure older buildings.

Other Properties We Insure

• Office Building Insurance
• Retail Store & Strip Center Insurance
• Warehouse & Distribution Center Insurance
• Industrial & Manufacturing Building Insurance
• Mixed-Use Building Insurance
• Medical & Dental Office Insurance
• Self-Storage Facility Insurance
• Vacant Building Insurance
• Builder’s Risk Insurance
• Restaurant & Bar Property Insurance
• Contractor Shop & Yard Insurance
• Auto Repair & Body Shop Insurance
• Hotel & Motel Insurance
• Church & House of Worship Insurance
• Gas Station & Convenience Store Insurance
• Salon, Barbershop & Spa Insurance
• Gym & Fitness Studio Property Insurance
• Daycare & School Insurance
• Dry Cleaner & Laundromat Insurance
• Landlord & Rental Property Insurance
• Business Tenant Insurance
• HOA & Condo Association Insurance
• Commercial Real Estate Investor Insurance
• Commercial Earthquake Insurance
• Business Interruption Insurance
• Equipment Breakdown Insurance
• Commercial Flood Insurance
• Inland Marine & Contractor’s Equipment Insurance

Don’t see your property type? We insure most commercial properties. See all commercial property coverage.

Get an Apartment Building Insurance Quote

Tell us about your property and we’ll shop the market for you. Call (818) 701-1033, email info@pswinsurance.com, or visit our office at 9036 Reseda Blvd., Suite 105, Northridge, CA.

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