Coverage requirements

Multifamily

Habitational95% completeness
Run gap analysis

Last updated August 2026 · Maintained and reviewed by the Advocate Insurance Consultants coverage research team.

Overview

What an adequately protected Multifamily program looks like

Advocate's recommended baseline coverage standard for multifamily properties, reflecting the core perils and coverage types essential for apartment and rental housing assets. A practical benchmark for non-agency transactions or for evaluating whether existing coverage meets market expectations.

Key takeaways

  • Spans 367 published requirements across 62 coverage type-peril pairs.
  • Applies to 1 asset type: Multi Family.
  • Covers 9 coverage types and 18 distinct perils.

At a glance

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Completion score

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21 of 62 WIM pairs required

Coverage tower

Required limits by coverage type and peril

Property5 coverage types

Builder's Risk

Avalanche≥ Total Project Value
Boiler & Machinery≥ Total Project Value
Earthquake≥ Total Project Value
Flood≥ Total Project Value
Mine Subsidence≥ Total Project Value
Named Storm≥ Total Project Value
Overall limit≥ Total Project Value
Sinkhole≥ Total Project Value
TRIA - Property≥ Total Project Value
Volcanic Eruption≥ Total Project Value
Wind Hail≥ Total Project Value
Non-Certified Acts of Terrorism Property≥ Total Project Value

Business Income

Avalanche≥ Business Income Amount
Boiler & Machinery≥ Business Income Amount
Earthquake≥ Business Income Amount
Flood≥ Business Income Amount
Mine Subsidence≥ Business Income Amount
Named Storm≥ Business Income Amount
Overall limit≥ Business Income Amount
Sinkhole≥ Business Income Amount
TRIA - Property≥ Business Income Amount
Volcanic Eruption≥ Business Income Amount
Wind Hail≥ Business Income Amount
Non-Certified Acts of Terrorism PropertyPer policy

Physical

Avalanche≥ RCV of Existing Structure / Insurable Value
Boiler & Machinery≥ RCV of Existing Structure / Insurable Value
Earthquake≥ RCV of Existing Structure / Insurable Value
Flood≥ RCV / Insurable Value of First 2 Floors Above Grade + any Floors Below Grade of Buildings Located in an SFHA
Mine Subsidence≥ RCV of Existing Structure / Insurable Value
Named Storm≥ RCV of Existing Structure / Insurable Value
Overall limit≥ RCV of Existing Structure / Insurable Value
Sinkhole≥ RCV of Existing Structure / Insurable Value
TRIA - Property≥ RCV of Existing Structure / Insurable Value
Volcanic Eruption≥ RCV of Existing Structure / Insurable Value
Wind Hail≥ RCV of Existing Structure / Insurable Value
Non-Certified Acts of Terrorism PropertyPer policy

Ordinance or Law

Avalanche≥ RCV of Existing Structure / Insurable Value
Boiler & Machinery≥ RCV of Existing Structure / Insurable Value
Earthquake≥ RCV of Existing Structure / Insurable Value
Mine Subsidence≥ RCV of Existing Structure / Insurable Value
Named Storm≥ RCV of Existing Structure / Insurable Value
Sinkhole≥ RCV of Existing Structure / Insurable Value
TRIA - Property≥ RCV of Existing Structure / Insurable Value
Volcanic Eruption≥ RCV of Existing Structure / Insurable Value
Wind Hail≥ RCV of Existing Structure / Insurable Value
Flood≥ RCV / Insurable Value of First 2 Floors Above Grade + any Floors Below Grade of Buildings Located in an SFHA
Overall limit≥ RCV of Existing Structure / Insurable Value
Non-Certified Acts of Terrorism Property≥ RCV of Existing Structure / Insurable Value

Business Personal Property

FloodPer policy
Liability4 coverage types

Employer's Liability

Overall limit$1M

Worker's Compensation

Overall limitPer policy

General Liability

Abuse$3M
Animal Attacks$3M
Assault & Battery$3M
Firearms Liability$3M
Molestation Liability$3M
Overall limit$3M

Terrorism Liability

TRIA - Liability$3M
Overall limit$3M
Non-Certified Acts of Terrorism Liability$3M

Requirements

Full requirement set for Multifamily

Every requirement in the Advocate standard, 367 rows across limits, deductibles, carrier rating, and presence checks. Search and filter to drill in.

Group
Type
Peril

Showing 50 of 367 matching · 367 total

RequirementPerilRequirement typeApplicabilityRequirement
General › AllCaptive Insurer or Risk Retention Group (FMAC & FMAE)OverallOtherAllConfirm if Insurance Coverage is provided via a Risk Retention Group or Captive Insurer.
Property › Business IncomeConfirm if Business Income is Included In Blanket LimitOverallDeductibleBlanketConfirm if Business Income is Included In Blanket Limit.
General › AllDo Not Allow for Premium FinancingOverallOtherAllInsurance that is Premium Financed is not accepted.
General › AllInsurance Carrier Rating [daae909e]OverallCarrier RatingAllCarrier AM Best Rating must be A- / VII.
Property › Business IncomeRequire 90-day Extended Period of Indemnity [c165f334]OverallOtherAllPolicies with loan amounts equal to or greater than $35M require a 90-day Extended Period of Indemnity Endorsement.
Liability › AllRequire ACORD 25OverallOtherAllAll liability coverages must be provided on an ACORD 25 form.
Property › AllRequire ACORD 28OverallOtherAllThe property coverage must be provided on an ACORD 28 form.
Liability › General LiabilityRequire Aggregate Number of Residential Units on the Blanket PolicyOverallOtherAllProvide the Aggregate Number of Residential Units covered under the Policy
General › AllRequire Broker Signature on Binding DocumentsOverallOtherAllInclude agent's signature on document.
General › AllRequire Carrier Cancellation NoticeOverallOtherAllIndicate "30 day notice of cancellation except 10 days for non-payment to the lender" on ACORD(s) and/or insurance documents.
Property › AllRequire Geographical Risk AnalysisOverallOtherBlanketBlanket Policies require a Geographical Risk Analysis.
General › AllRequire Insurance Broker DetailsOverallOtherAllBound proof of insurance must include the insurance broker's details: insurance brokerage name, broker name, email, phone number, and brokerage mailing address.
Property › PhysicalRequire Joint Loss Agreement EndorsementBoiler & MachineryOtherAllIf the Boiler and Machinery coverage is provided by a different insurance carrier than the primary insurance carrier providing the property coverage, both policies require a Joint Loss Agreement Endorsement.
Property › Business IncomeRequire Largest Individual EGI of Properties in an SFHA on the SOVFloodOtherBlanketProvide the Largest Individual EGI of Properties in an SFHA on the SOV.
Property › Business IncomeRequire Largest Individual EGI of Properties on SOVOverallOtherBlanketProvide the Largest Individual EGI of all Properties on the SOV.
Property › PhysicalRequire Largest Individual TIV on SOVOverallOtherBlanketProvide the Largest Individual TIV on the SOV.
Property › PhysicalRequire Largest Individual TIV on SOV Located in Tier 1 Wind ZoneNamed StormOtherBlanketProvide the Largest Individual TIV Located in a Tier 1 Wind Zone on the SOV.
Property › AllRequire Lender as Loss PayeeOverallOtherAllLender must be marked as Loss Payee. ({case.lossPayeeClauses})
Property › AllRequire Lender as MortgageeOverallOtherAllLender must be marked as Mortgagee. ({case.mortgageeClauses})
Liability › General LiabilityRequire Liability Limit Applied Per LocationOverallOtherMultilocationThe Aggregate Limit of Liability must apply on a per location basis.
Property › Ordinance or LawRequire Ordinance or Law Coverage D - Increased Period of Restoration (5+ Stories)OverallOtherScheduledOrdinance or Law Coverage D - Increased Period of Restoration Endorsement is required.
General › AllRequire Policy CollectionOverallOtherAllThe long form policy must be provided.
Liability › General LiabilityRequire Policy Form Basis - General LiabilityOverallOtherAllGeneral Liability Policy Form Basis must be on a Per Occurrence Basis. Claims Made Basis is permitted if combined with Professional Liability.
Liability › Terrorism LiabilityRequire Policy Form Basis - Terrorism LiabilityOverallOtherAllTerrorism Liability Policy Form Basis must be "Per Occurrence Basis".
Property › Builder's RiskRequire Special Coverage Form [buildersRisk]OverallOtherAllThe Builder's Risk Coverage must be on a Special Form.
Property › Business IncomeRequire Special Coverage Form [businessIncome]OverallOtherAllThe Business Income must be on a Special Form.
Property › Business Personal PropertyRequire Special Coverage Form [contentsBusinessPersonalProperty]OverallOtherAllThe Business Personal Property Coverage must be on a Special Form.
Property › PhysicalRequire Special Coverage Form [property]OverallOtherAllThe Building Coverage must be on a Special Form.
General › AllRequire a Payment MethodOverallOtherAllThe annualized premium per coverage line AND (1) Paid in Full Receipt OR (2) Proof of Payment Schedule OR (3) Invoice if this premium is escrowed by the Lender are requied.
Property › PhysicalRequire a Property Loss Payout BasisOverallOtherAllAsset must payout on an RCV Basis.
Property › AllRequire a Statement of Values [dcc040df]OverallOtherMultilocationStatement of Value is required for a True Blanket or Master policy .
Liability › General LiabilitySufficient Abuse Liability Multi-Location Aggregate LimitAbuseLimitMultilocationThe Abuse Liability Aggregate Limit is dependent on the number of residential units covered under the policy
Liability › General LiabilitySufficient Abuse Liability Multi-Location DeductibleAbuseDeductibleMultilocationAbuse Liability Deductible should be less than or equal to $250K.
Liability › General LiabilitySufficient Abuse Liability Multi-Location Occurrence LimitAbuseLimitMultilocationThe Abuse Liability Occurrence Limit is dependent on the number of residential units covered under the policy.
Liability › General LiabilitySufficient Abuse Liability Single-Location Aggregate LimitAbuseLimitSingle Location LiabilityThe Abuse Liability Aggregate Limit is dependent on the number of residential units covered on the policy .
Liability › General LiabilitySufficient Abuse Liability Single-Location DeductibleAbuseDeductibleSingle Location LiabilityAbuse Liability Deductible should be less than or equal to $50K.
Liability › General LiabilitySufficient Abuse Liability Single-Location Occurrence LimitAbuseLimitSingle Location LiabilityThe Abuse Liability Occurrence Limit is dependent on the number of residential units covered under the policy.
Liability › General LiabilitySufficient Animal Attacks Liability Multi-Location Aggregate LimitAnimal AttacksLimitMultilocationThe Animal Attacks Liability Aggregate Limit is dependent on the number of residential units covered on the property.
Liability › General LiabilitySufficient Animal Attacks Liability Multi-Location DeductibleAnimal AttacksDeductibleMultilocationAnimal Attacks Liability Deductible should be less than or equal to $250.
Liability › General LiabilitySufficient Animal Attacks Liability Multi-Location Occurrence LimitAnimal AttacksLimitMultilocationThe Animal Attacks Liability Occurrence Limit is dependent on the number of residential units covered on the property.
Liability › General LiabilitySufficient Animal Attacks Liability Single-Location Aggregate LimitAnimal AttacksLimitSingle Location LiabilityThe Animal Attacks Liability Aggregate Limit is dependent on the number of residential units covered on the property.
Liability › General LiabilitySufficient Animal Attacks Liability Single-Location DeductibleAnimal AttacksDeductibleSingle Location LiabilityAnimal Attacks Liability Deductible should be less than or equal to $50K.
Liability › General LiabilitySufficient Animal Attacks Liability Single-Location Occurrence LimitAnimal AttacksLimitSingle Location LiabilityThe Animal Attacks Liability Occurrence Limit is dependent on the number of residential units covered on the property.
Liability › General LiabilitySufficient Assault & Battery Liability Multi-Location Aggregate LimitAssault & BatteryLimitMultilocationThe Assault & Battery Liability Aggregate Limit is dependent on the number of residential units covered on the policy.
Liability › General LiabilitySufficient Assault & Battery Liability Multi-Location DeductibleAssault & BatteryDeductibleMultilocationAssault & Battery Liability Deductible should be less than or equal to $250K.
Liability › General LiabilitySufficient Assault & Battery Liability Multi-Location Occurrence LimitAssault & BatteryLimitMultilocationThe Assault & Battery Liability Occurrence Limit is dependent on the number of residential units covered on the policy.
Liability › General LiabilitySufficient Assault & Battery Liability Single-Location Aggregate LimitAssault & BatteryLimitSingle Location LiabilityThe Assault & Battery Liability Aggregate Limit is dependent on the number of residential units covered on the policy.
Liability › General LiabilitySufficient Assault & Battery Liability Single-Location DeductibleAssault & BatteryDeductibleSingle Location LiabilityAssault & Battery Liability Deductible should be less than or equal to $50K.
Liability › General LiabilitySufficient Assault & Battery Liability Single-Location Occurrence LimitAssault & BatteryLimitSingle Location LiabilityThe Assault & Battery Liability Occurrence Limit is dependent on the number of residential units covered on the policy.
Property › PhysicalSufficient Avalanche Blanket DeductibleAvalancheDeductibleBlanketMax Allowable Avalanche Blanket Deductible is $250K.

317 more requirements

Compliance

Who requires Multifamily

  • Non-agency and balance-sheet lenders financing apartment and rental housing use a defined coverage floor when a deal falls outside GSE eligibility, and CMBS and bank lenders reference it at origination and through servicing.
  • Property managers and owner-operators rely on it to confirm property, habitability, and high-severity liability exposures are addressed before closing or renewal.
  • Investors and their advisors treat it as a due-diligence checkpoint, while carriers and reinsurers read it as evidence of disciplined risk management on a class facing tightening appetite.
  • Brokers use it to structure submissions and set client expectations against a hardening habitational market.
  • The coverage set mirrors Freddie Mac agency standards, so owners benchmarking an existing program against market and GSE expectations get a clean point of comparison even when agency financing is not the intended exit.

Carrier standard. Carrier AM Best Rating must be A- / VII.

Advocate runs these checks automatically for the brokers who place habitational coverage.

Exclusions

What Multifamily does not cover

  • This baseline delivers a property and liability foundation rather than an all-lines program.
  • It leaves out cyber liability and data breach response, along with pollution and environmental impairment.
  • Inland marine falls outside the program as well, along with liquor liability tied to leasing-office or community events.
  • Resident contents remain the tenant's responsibility through renters insurance, and owners increasingly require it by lease.
  • The exposures most likely to be sublimited or excluded in the current market are the ones agency standards now scrutinize: assault and battery, sexual abuse and molestation, firearms, and animal attacks.
  • Confirm these are placed without restrictive sublimits, since carriers are narrowing or declining them and an escrow may be required when coverage is unavailable.

Risk advisory

Typical coverage gaps in Habitational

The sharpest issue in habitational right now is high-severity liability.

  • Assault and battery, sexual abuse and molestation, firearms, and animal-attack claims are exactly the exposures GSE standards have moved to require without sublimits, and carriers are simultaneously tightening or declining them.
  • Verify each is present at a meaningful limit rather than a token sublimit, and be ready for premium and retention increases or an escrow requirement where the market will not offer clean terms.
  • Reconcile the building limit to replacement cost, because stale valuations create coinsurance shortfalls after a total loss.
  • Size business income and loss of rents to a realistic rebuild timeline, not an optimistic one.
  • In catastrophe-exposed markets, read named-storm and wind or hail percentage deductibles closely and confirm flood placement.
  • Keep general liability and an umbrella sized to habitability, premises-security, and negligent-security litigation trends.

FAQ

Frequently asked questions

What insurance does a multifamily apartment property need?

A core program pairs property coverage with general liability, business income and loss of rents, workers' compensation, ordinance or law, and directors and officers where an ownership entity exists. High-severity coverages for assault and battery, abuse and molestation, firearms, and animal attacks are included, and flood, named storm, and earthquake perils are added by location.

Why are assault and abuse coverages hard to get for multifamily now?

Agency standards have moved to require assault and battery and sexual abuse and molestation coverage without sublimits, while carriers are simultaneously narrowing, sublimiting, or declining these exposures. The result is a gap between what lenders require and what the market offers, sometimes forcing higher retentions, higher premiums, or a lender-required escrow.

Does multifamily insurance cover tenant belongings?

No. The owner's property policy covers the building and owned contents, not residents' personal property. Tenants protect their belongings through renters insurance, which owners increasingly require by lease. Mandating renters coverage also helps deflect small liability claims and confirms residents carry their own liability protection.

How should business income be set for a multifamily property?

Business income and loss of rents should reflect a realistic rebuild timeline for the specific building, including permitting and code-upgrade delays, not a best-case estimate. Underinsuring the period of restoration is a common gap, so align the limit and any waiting-period deductible with how long displaced units would actually take to return to service.

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About this coverage standard

This profile is maintained by the Advocate Insurance Consultants coverage research team, which maintains the Coverage Library benchmarks against the World Insurance Model taxonomy and reviews each standard against live market placements. It is general guidance, not legal or coverage advice. Verify requirements against the actual policy and contract.

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