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Risk Summary & Coverage Checklist: Apartments - February 2018

APARTMENTS

SIC CODE: 6513 Apartment Building Operators

NAICS CODE: 53111 Lessors of Residential Buildings and Dwellings

Suggested ISO General Liability Code: 60010, 60011, 60012, 60013, 60015, 60016

Suggested Workers Compensation Code: 9012, 9015

Description of operations: Apartments offer long-term accommodations for individuals through a rental agreement. They can be one story or multi-story and may provide a wide range of services.

Property exposures are those of a private home but multiplied by a number of families. The age of the building(s) is an important consideration, along with updating of wiring, heating, air conditioning, plumbing and roof. Was the building originally built as an apartment or was it converted? How are the utilities controlled? Are there individual heating units or does a boiler supply heat to all? Who maintains these units -- wherever they are? Are all apartments in one fire division or are there separating firewalls separating units and floors? Are there smoke/fire alarms in all units and hallways? Are they checked regularly? Is there a laundry area for the complex or does each unit have its own hookups?

Crime exposure can be significant or minimal. Employee Dishonesty is important and must be controlled through the use of receipts and regular monitoring. Inventory must be controlled by limiting ordering and conducting physical inventories on a regular basis. Access to apartments must be controlled, as must the master keys. Money and securities can be a problem on rent collection day. Deposits should be made promptly and appropriate security should be provided.

Inland marine exposure is from Contractors’ Equipment for the lawn and other repairs. Exposure will vary, based on how maintenance is provided. In addition, there are accounts receivables, computer and valuable papers (leases) exposures. Duplicates of all data should be made and kept off premises for easy replication in the event of a loss.

Premise liability exposure is from Life Safety. Units must comply with all governmental codes on smoke and fire detection, fire extinguishers, and carbon monoxide detectors. Of equal concern is the condition of the parking lots, the adjoining sidewalks, and any parking structures or other common areas. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and fall.

Security of tenants within the building and in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Is there adequate interior and exterior lighting? What other security measures and controls are in place? What type of security does the operation commit to in advertising and rental agreements? Because landlords are now having discrimination suits lodged against them, a stated procedure should be in place to prevent discrimination. Clear guidelines for tenant acceptability are important.

Are there other exposures such as community buildings, playgrounds or services such as bellhop and security systems?

Automobile exposure is limited to Hired Non-ownership and the occasional use of service vehicles. Any driver should have a valid driver’s license. Personal use of company-owned vehicles must be controlled.

Workers compensation hazards usually are service-, janitorial- or maintenance-related with back pain, hernia, sprain, and strain being the most common. What kind of training do employees receive, and what type of material lifting or conveying devices are used?

Minimum recommended coverage:

Building, Business Personal Property, Business Income, Accounts Receivables, Computers, Contractors’ Equipment, Valuable Papers, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Hired and Nonownership Auto, Workers Compensation

Other coverages to consider:

Employment Related Practices, Environmental Impairment, Automobile Liability and Physical Damage

Agent: The coverages listed below are suggested for consideration for real estate and rental operations. After evaluating each of the listed coverages, check the recommended blank by those that apply specifically to this client. Make sure both the exposure and the coverage are explained to the client. Each coverage and option is explained in the Insurance Coverage Definitions document.

Client: For each of the coverages that the agent has recommended, initial whether you have chosen to accept or reject that coverage in the blanks provided.

PROPERTY COVERAGES

 

 

 

 

Recommend

Accept

Reject

Building and Personal Property Coverage Form

 

 

 

Building

______

______

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Business Personal Property

______

______

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Personal Property of Others

______

______

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Improvements and Betterments

______

______

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Condominium Coverage Form

 

 

 

Condo-Unit Owners Coverage

______

______

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Association Coverage

______

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______

Commercial Output Policy

______

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Building and Personal Property Coinsurance

______

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Percentages    None 80% 90% 100%

______

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Bldg               ____ ____ ____ ____

______

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BPP               ____ ____ ____ ____

______

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PPO               ____ ____ ____ ____

______

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I & B               ____ ____ ____ ____

______

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Alternatives to Coinsurance

 

 

 

Agreed Value

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Functional Replacement Cost

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Peak Season

______

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Reporting Form

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Other ________________________

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Optional Property Coverages

 

 

 

Boiler and Machinery

______

______

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Legal Liability

______

______

______

 

 

 

 

 

Recommend

Accept

Reject

Optional Property Endorsements

 

 

 

Additional Debris Removal

______

______

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Ordinance or Law

______

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Outdoor Trees, Shrubs and Plants Enhancement

______

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Replacement Cost Valuation

______

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Utility Services-Direct Damage

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Other Property Options

 

 

 

______________________________________

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______________________________________

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______________________________________

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TIME ELEMENT COVERAGES

 

 

 

Business Income With Extra Expense Coinsurance Percentage ___

______

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Business Income Without Extra Expense Coinsurance Percentage ___

______

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Extra Expense

______

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Leasehold Interest

______

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Alternatives to Coinsurance

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Agreed Value

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Maximum Period of Indemnity

______

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Monthly Limit of Indemnity

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Premium Adjustment

______

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Optional Time Element Endorsements

 

 

 

Business Income from Dependent Properties

______

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Ordinance or Law Increased Period of Restoration

______

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Utility Services

______

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Other Time Element Coverages

 

 

 

______________________________________

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PROPERTY AND TIME ELEMENT CAUSES OF LOSS

 

 

 

 

Recommend

Accept

Reject

                    Bldg BPP PPO BI   EE

 

 

 

Basic          ____ ____ ____ ___ ____

______

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Broad          ____ ____ ____ ___ ____

______

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Special       ____ ____ ____ ___ ____

______

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Earthquake ____ ____ ____ ___ ____

______

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Flood          ____ ____ ____ ___ ____

______

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Other Cause of Loss Endorsements

 

 

 

______________________________________

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______________________________________

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______________________________________

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INLAND MARINE COVERAGES

 

 

 

Accounts Receivable

______

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Builders Risk

______

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Commercial Articles

______

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Contractors Equipment

______

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Difference In Conditions – DIC

______

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Electronic Data Processing

______

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Fine Arts

______

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Goods in Transit

______

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Miscellaneous

______

______

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Signs (Neon and Electric)

______

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Valuable Papers and Records

______

______

______

 

 

 

 

Other Inland Marine Coverages

 

 

 

______________________________________

______

______

______

______________________________________

______

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______________________________________

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CRIME COVERAGES

 

 

 

 

Recommend

Accept

Reject

Money, Securities and Other Property

 

 

 

Employee Dishonesty Coverage

______

______

______

   Including Customer’s Goods

______

______

______

Computer Fraud Coverage

______

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Extortion Coverage

______

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Forgery or Alterations Coverage

______

______

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Lessees of Safe Deposit Boxes Coverage
(Securities and Other Property only)

______

______

______

 

 

 

 

Money and/or Securities Only

 

 

 

Theft, Disappearance and Destruction

______

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Robbery and Safe Burglary

______

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Securities Deposited With Others Coverage

______

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Property other than Money and Securities

 

 

 

Premises Burglary

______

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Premises Theft

______

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Robbery and Safe Burglary

______

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Other Crime Coverages

 

 

 

______________________________________

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______________________________________

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LIABILITY COVERAGES

 

 

 

Commercial General Liability

 

 

 

   Occurrence Basis

______

______

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   Claims- Made Basis

______

______

______

 

 

 

 

Optional Liability Coverages

 

 

 

Directors and Officers

______

______

______

Employee Benefits

______

______

______

Employment- Related Practices

______

______

______

 

Recommend

Accept

Reject

Liquor

______

______

______

Owners and Contractors Protective

______

______

______

Professional/E&O Liability

______

______

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Railroad Protective

______

______

______

Special Events

______

______

______

 

 

 

 

Other Liability Coverages

 

 

 

______________________________________

______

______

______

______________________________________

______

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______________________________________

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COMMERCIAL AUTO COVERAGES

 

 

 

Liability

______

______

______

Physical Damage

______

______

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Uninsured Motorists

______

______

______

Underinsured Motorist

______

______

______

Hired Cars

______

______

______

Non-Ownership Auto

______

______

______

P.I.P./No-Fault

______

______

______

Garagekeepers

______

______

______

 

 

 

 

Other Auto Coverages

 

 

 

______________________________________

______

______

______

______________________________________

______

______

______

______________________________________

______

______

______

 

 

 

 

WORKERS COMPENSATION COVERAGES

 

 

 

Workers Compensation and Employers Liability

______

______

______

Stop Gap or Employers Liability Coverage

______

______

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Federal Employers Liability Act

______

______

______

Longshore and Harbor Workers Coverage

______

______

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Voluntary Compensation

______

______

______

 

 

 

 

 

Recommend

Accept

Reject

Other Workers Compensation Endorsements

 

 

 

______________________________________

______

______

______

______________________________________

______

______

______

______________________________________

______

______

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EXCESS LIABILITY COVERAGES

 

 

 

Umbrella Policy

______

______

______

Excess Liability Policy

______

______

______

 

 

 

 

AVIATION COVERAGES

 

 

 

Aircraft Policy

______

______

______

Passenger Liability

______

______

______

 

 

 

 

SPECIALTY COVERAGES

 

 

 

Environmental Impairment Liability Policy

______

______

______

Fiduciary Liability Insurance

______

______

______

International/Foreign Operations Insurance

______

______

______

Rain or Weather Insurance

______

______

______

Terrorism Insurance

______

______

______

Underground Storage Tank Liability – UST

______

______

______

Other ____________________________________

______

______

______

 

 

 

 

BONDS

 

 

 

License Bond

______

______

______

Other _________________________________

______

______

______

 

 

 

 

Other Options

 

 

 

______________________________________

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Comments

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I certify that I have reviewed my coverage needs in accordance with this checklist with my agent and I have accepted or rejected the recommended coverages as indicated by my initials in the spaces above.

___________________________________ Signature of Client ______________________ Date

_____________________________________________ Title

I certify that I have reviewed the coverages outlined in this checklist with my client and that the initials of the client indicate the acceptance or rejection of the coverages recommended.


___________________________________ Signature of Agent _______________________ Date