5 coverage gaps that leave landlords exposed

A policy can cover fire and a slip-and-fall and still leave you paying for the loss that actually happens. Five gaps we run into constantly:

1. Flood

Every standard policy excludes it. Rising water, storm surge, an overflowing creek: none of it is covered by your building policy. Flood is its own policy. Near water or in a flood zone? You need one.

2. Loss of rents

A fire makes the building unusable for five months. The repair is covered. The rent you're not collecting isn't, unless you have this. We set it to 12 months, because rebuilds run long once permits and contractors are involved.

3. Ordinance or law

Old buildings, watch this one. After a bad loss, the city makes you rebuild to today's code: new electrical, sprinklers, accessibility. A plain policy pays to replace what burned, not to bring the rest up to code. This coverage pays that difference.

4. Equipment breakdown

A boiler that fails, an HVAC unit that burns out, a stuck elevator. That's mechanical breakdown, not a covered peril, so a standard policy skips it. The coverage is cheap. If your building has shared systems, add it.

5. Fair housing (apartments only)

Nothing to do with the building, which is why it gets missed. A tenant or applicant files a discrimination complaint and you pay to defend it, merit or not. Habitational policies can cover that defense. Rent to people, not businesses? Ask if it's on yours.