Do apartment owners need inland marine insurance?

Inland marine insurance covers property that is portable, in transit, or located at temporary sites. For apartment owners and property management operations, this can include maintenance tools and equipment used across multiple properties, landscaping equipment, computer equipment used at temporary or satellite locations, and building materials in transit to a project site. Inland marine coverage traces its origins to ocean marine insurance and is classified under the Nationwide Marine Definition maintained by the National Association of Insurance Commissioners (NAIC), which establishes the types of property eligible for inland marine treatment.

Standard commercial property insurance covers property at the specific locations listed on the policy. If a maintenance team transports tools, equipment, or materials between properties, that property may not be covered during transit or while at a location not listed on the policy. Inland marine fills this gap. The ISO Contractors Equipment form (CM 00 10) and similar inland marine forms provide coverage on a scheduled or blanket basis for tools and equipment.

For most apartment owners with a single property, inland marine coverage may not be necessary because the tools and equipment on-site are covered under the commercial property policy. However, owners with multiple properties whose maintenance staff moves between locations, or owners who store valuable equipment at locations other than the insured property, should consider inland marine coverage. The premiums are typically modest relative to the value of the equipment covered.