New apartment communities are breaking ground across Tennessee, including a 287-unit project on Chattanooga's South Side and a proposed 280-unit affordable development off Dickerson Pike in Nashville. Whether you invest in multifamily property, own a small rental near one, or plan to rent in one, new supply changes your insurance picture.
If You Own Rental Property
- Landlord (dwelling fire) policies: A standard homeowners policy does not cover a rental. You need a landlord policy that covers the building, loss of rent and liability.
- Loss of rents: If a fire makes a unit unlivable, this coverage replaces rent while you repair it.
- Liability limits: More tenants means more chances for a slip-and-fall or injury claim. Consider an umbrella policy above your base limits.
- Ordinance or law: Rebuilding an older building to current code can cost far more than the original structure. Ask whether this is included.
If You Rent Near New Construction
Nearby construction brings dust, noise and traffic, and sometimes damage claims. Owners should document their property's condition and keep photos. Renters should carry renters insurance, since the landlord's policy does not cover your belongings or your liability.
If You Rent in a New Complex
- Personal property coverage for furniture and electronics
- Personal liability, often 100,000 dollars or more
- Additional living expenses if a unit becomes unlivable
- Water damage coverage, since upstairs leaks are a leading apartment claim
Affordable Housing and Tax Incentives
Tax-break programs such as PILOT agreements change what a project pays in property tax, not what it pays for insurance. Owners should still budget for full replacement cost coverage, and tenants in income-restricted units should still carry renters insurance, which is often only a few dollars a month.
Questions to Ask Your Agent
- Is my rental covered for loss of rent?
- Do I need an umbrella policy?
- Does my policy cover water damage from a neighbor's unit?
- Is replacement cost based on current rebuilding prices?
Talk to All Seasons Insurance Group
All Seasons Insurance Group can review your situation and quote coverage. Call (865) 263-1400 or visit asigtn.com. Need real estate help? Visit Kings of Real Estate. Financing questions? AnnieMac Home Mortgage is at (865) 518-6408.
