5+ Unit Multifamily — Insured for What It Actually Is.
Small apartment buildings cross the line from residential into commercial multifamily — different forms, different carriers, and a habitability and liability profile that demands real underwriting.
At five units, you leave the residential dwelling-fire world and enter commercial multifamily. The building is now rated as an income-producing commercial property, with commercial general liability, commercial property valuation, and the underwriting scrutiny that comes with apartment exposure.
What makes 5+ unit multifamily different to insure
Commercial multifamily is underwritten on the building's operations: unit count, occupancy type, tenant screening, deferred maintenance, prior losses, and protective systems. Habitability and tenant-injury liability are frequent. NJ's tenant-protection statutes add exposure that the GL form has to address. And business income (commercial loss of rents) has to carry a long enough period of indemnity for a real apartment rebuild.
The coverage lines that matter here
| Line | Why it matters for 5+ unit multifamily |
|---|---|
| Commercial Property | Replacement-cost building coverage rated for apartment occupancy, with business income for lost rents. |
| Commercial General Liability | Tenant injuries, habitability, common-area exposure across many units. The core liability line. |
| Umbrella | Apartment buildings concentrate liability — excess limits over GL protect the building's equity. |
| Ordinance or Law | Older NJ apartment stock triggers expensive code upgrades on a loss. |
| Equipment Breakdown | Central boilers, elevators, and HVAC serving the whole building. |
Carrier appetite & underwriting
This is a real underwriting class. Standard and specialty carriers both write NJ apartments, but appetite turns on unit count, construction, age, loss history, and management quality. Buildings with deferred maintenance, prior fire/water losses, or in higher-crime areas move toward specialty and E&S markets. We carry both.
What it typically costs in NJ
Pricing is driven by the specifics below; treat these as orientation, not quotes:
- Small 5–10 unit building, masonry, clean losses → $4,000–$10,000/yr all-in
- Older frame walk-up with losses → meaningfully higher, often specialty-placed
- Add umbrella, flood, and equipment breakdown per the building's profile
FAQ
Why is my 6-unit treated differently than my 4-unit?
Five units is the line where most carriers move you from a residential dwelling-fire form to a commercial multifamily property policy with commercial GL. The coverage is broader and the underwriting is more involved.
What drives the price on an apartment building?
Unit count, construction type and age, occupancy, loss history, protective systems, and management. A masonry building with no losses prices very differently from an older frame walk-up with prior claims.
Do NJ tenant laws affect my coverage?
Yes. Habitability, the Anti-Eviction Act, and related statutes shape your liability exposure. We read the GL exclusions against them so a habitability or wrongful-eviction claim isn't an uncovered surprise.
Quote your 5+ unit multifamily the right way.
One intake covers the full stack for this property type — and we route it to the carrier that actually wants it. Most quotes back within 24–48 hours.