A fourplex is not four houses and it is not an apartment building. Small multi-unit property sits in its own category, and the policy that fits a single rental house does not stretch to it.
Once a building holds several units, one loss can empty all of them. That is what changes.
Three things that change when the tenants share a building.
On a single rental house a total loss costs one rent. On a fourplex it costs four, simultaneously, for however long the rebuild takes. Loss of rent limits set from the rent of one unit are the most common and most expensive fault on a small multi-unit policy.
One roof, often one water heater arrangement, frequently one electrical service. A failure in a shared system is not contained to the unit it started in, which is why carriers underwrite the building rather than the tenancies.
Common areas, shared stairs, shared parking and more people coming and going. The liability limit appropriate to a single rental house is rarely the right one for a building with four households and their visitors in it.
The building as a whole rather than unit by unit.
Loss of rent should be set against everything that stops coming in.
Roof, service and water heating decide both price and appetite.
Stairs, walkways and parking are where these claims come from.
Send the number of units and the total monthly rent roll, not the rent of one unit.
We set loss of rent against every unit, which is the usual gap.
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