Technically, unless you have a mortgage, you don’t have to have insurance on your multi-family investment properties.
But that would be kind of stupid.
Talk with a good insurance provider to get details and get your questions answered. We are happy to provide recommendations to connect you with good insurance agents.
In general, your insurance will cover the building against damage as well as complete loss. You also want to have liability coverage in case someone gets hurt on your property. You’d probably rather have the insurance company pay those hundreds of thousands of dollars rather than it coming out of your pocket.
For rental properties, you might also consider getting rent loss protection. What would happen if your building was damaged such that the tenants had to move out? You’re not very likely going to make them pay rent. But you are very likely going to have to pay the bills on the building. Just something to think about.
Professionally, we’re fans of insurance. Obviously, we don’t ever want to have to use it, but insurance is good protection.