6 Best Multifamily Insurance Companies for STR and Long-Term Investors
Choosing the right multifamily insurance is mission critical. Policies must protect the structure, your rental income, and your liability while fitting your strategy across small multifamily homes, apartment buildings, or short-term rentals. Below is a practical guide and a summary of six reputable providers.
Understanding Multifamily Insurance
Multifamily insurance protects buildings with multiple units and the owner’s rental business. Core components typically include property coverage (structure and owner’s contents used for the rental), liability, loss of rents, and endorsements for perils like water damage or wind. STR owners often need business income, guest-caused damage, and amenity coverage.
Top companies and where they excel:
Obie — Best Overall: Investor-focused brokerage insuring small multifamily and apartments, with tech-enabled quoting and nationwide availability. Average reported savings of about 25% per user and coverage that can include property, liability, and lost rental income.
Steadily — Best for Multiple Multifamily Types: Landlord-first carrier options for 2–4 units and apartments, plus vacant/renovation/STR uses. Broad peril menu and nationwide reach.
USAA — Best for Small Multifamily (2–4 units): Longstanding insurer with discounts and options like lost rental income, liability, and home sharing coverage; commercial policy needed for larger buildings.
Acentria Insurance — Best for Apartment Buildings: Business insurance approach covering apartments and complex needs like umbrella, floods, and manager professional liability; strongest regional expertise in the Southeast, with ability to underwrite nationally.
CBIZ — Best for Short-Term Rentals: Vacation-rental specialist for up to 4 units, with amenity coverage (pools, bikes), business income, bed bug cleanup, and liability; operates nationwide.
Travelers — Best for Lost Rental Income: National, established insurer with comprehensive landlord coverage for up to 4 units, including fair rental value and liability.
Key Rules or Steps
Match coverage to asset and use
Align policy type with property size (2–4 units vs. 5+), rental strategy (STR vs. long-term), and risk profile (amenities, weather, water). Confirm business income/loss of rents and liability limits.Prioritize transparency and claims support
Favor carriers that clearly outline exclusions, deductibles, endorsements, and claims workflows. Ask about timelines, documentation, and adjuster access before you buy.
Why It Matters for Investors
Insurance is a core line item that protects NOI. The right policy can:
Replace lost rental income during covered events.
Reduce capex shock after damage.
Shield owners from lawsuits tied to guests, vendors, and premises liability.
Satisfy lender requirements and preserve financing terms.
Step-by-Step Process
Profile the property and risks
Unit count, construction, year built, roofs, systems, flood/wind exposure, amenities, and STR usage.Define must-have coverages
Property, liability, business income, water backup, ordinance or law, equipment breakdown, STR endorsements.Get 3+ comparable quotes
Request like-for-like limits/deductibles. Include Obie, Steadily, and one national incumbent (USAA or Travelers). For apartments, add Acentria; for STRs, add CBIZ.Compare cost and value
Evaluate premium, sublimits, exclusions, claim reputation, and available discounts (bundles, monitors, no-claim history).Lock in vendor and claims expectations
Document inspection needs, proof-of-loss standards, payout timelines, and contact paths.Review annually
Update values, add/remove endorsements, and rebid after major renovations or regulation shifts.
Common Mistakes to Avoid
Undervaluing replacement cost leading to coinsurance penalties.
Skipping business income coverage for STRs or small multis.
Ignoring water backup and wind/hail deductibles that erode real protection.
Assuming 2–4 unit policies fit 5+ unit buildings without moving to commercial forms.
Relying on platform “host guarantees” instead of true insurance.
How Rent Live Play Helps
Rent Live Play partners with owners to align coverage with real operating risks. We help you scope exposures (STR vs. long-term, amenities, local hazards), and integrate insurance requirements into housekeeping, maintenance, and guest policies. As a top-ranking co-host, we focus on compliance, documentation, and incident response so claims go smoother and downtime stays low. Reach out to our team for more information.
Frequently Asked Questions
Which insurer is best overall for multifamily investors?
Obie stands out for investor-centric coverage across 2–4 units and apartment buildings, with technology-driven quoting and broad options for property, liability, and lost rental income.
Who should STR owners consider first?
CBIZ is a strong pick for vacation rentals up to 4 units, with amenity and guest-related protections plus business income. Also request quotes from Obie and Steadily to compare pricing and endorsements.
Conclusion
Multifamily insurance is not one-size-fits-all. Match policy form and endorsements to your asset type and rental strategy, then compare premiums against claims support and real exclusions. The six companies above offer strong starting points whether you operate small multis, apartment buildings, or STRs. For help evaluating options and integrating risk management into daily operations, Rent Live Play is ready to partner with you.
Disclaimer:
This article is for informational purposes only and does not constitute legal, financial, or investment advice. Always consult with qualified professionals before entering into any real estate transaction.
