Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

More Renters = More Apartment Building Insurance Needs

Published on January 5, 2016

The new movie The Big Short that came out over Christmas once again draws our eye to the housing market crash that happened a decade ago. Since then, homeownership rates have dropped dramatically in the U.S. and renting rates are increasing with correlating rates.

According to a graph put together by the Federal Reserve Bank of St. Louis Economic Research (FRED), the home ownership rates in California (54.2% in 2014 and estimates for 2015 show it still dropping) has not been this low since 1990.

According to the U.S. Census, California is not alone in this lurch. The nation is down to a home ownership rate of 63.4% as of the second quarter of 2015, which is the lowest it’s been since 1967.

Whether people are not as financially stable, they’re unable to get a loan, or whether they prefer the flexibility and lack of responsibility for a property that renting affords them, it’s clear, across the U.S. and especially in California, we’re moving toward renting being the more common living situation.

An article from CNBC showed that apartments play a major role in that demand:

“Apartment supply is still far lower than demand. Annual rent growth hit 5 percent in the second quarter of this year, according to Axiometrics, a real estate analytics company. Apartment occupancy hit 95.2 percent, a near record high.”

Apartment buildings are in high demand and they need to be insured. You can be the agent that insures them with the help of Abram Interstate’s wholesale apartment building insurance product. We even have the availability to cover older apartment buildings — something many company’s struggle to cover.

If you haven’t broken into the market for insuring apartment buildings yet, do it now. The demand for apartments is on the rise, which means the number of apartment buildings needing insurance is growing and will continue to grow. This is a product that’s needed, no matter where in California you live, and you can be the one to provide the apartment building coverage they need.

Click here to submit a one-page quick-quote application now!

Apartments Insurance Product Highlight

Package: Property and General Liability

Higher Deductibles Available

Optional Coverages

  • Building owners endorsement is available.
  • Blanket limits building and business personal property coverage is available
  • Business income and extra expense
  • Basic/ Broad/ Special Form
  • Replacement cost or ACV
  • Building
  • Contents
  • Signs
  • Crime

Underwriting Summary

  • Apartments that are more than 6 stories must be sprinklered not to exceed 7 stories.
  • Smoke detectors in all units.
  • Minimum occupancy rate of 80%.
  • Mercantile exposures cannot exceed 25% of the total building area.
  • Pools must be fenced and equipped with a self-closing, self-locking gate life-saving ring and shepherds hook.


Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for Personal Lines Insurance, Commercial Lines Insurance, and Agribusiness Insurance in California and surrounding areas.

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