When it comes to multifamily operations, laundry rooms often fly under the radar until something goes wrong. Whether you operate in-unit or shared facilities, laundry equipment can quietly influence your property insurance premiums, risk profile, and long-term liability exposure more than you might think.
Understanding how laundry operations affect your insurance coverage, and what you can do to reduce risk, is key to protecting your property and maintaining cost efficiency.
Laundry rooms combine water, electricity, and heat: three major sources of insurance claims. Fires, floods, and water damage often originate in or around laundry areas, and even small incidents can lead to costly repairs or tenant displacement.
According to the National Fire Protection Association (NFPA), dryers are involved in more than 13,000 structure fires annually in the U.S., causing an estimated $238 million in property damage each year. Water leaks from washer hoses and fittings are another top cause of insurance claims, particularly in older buildings.
From an insurance standpoint, every load of laundry represents:
Property insurance underwriters evaluate several aspects of your laundry setup when determining rates and coverage terms. Key factors include:
Older, unvented, or non-commercial machines pose greater fire and water risks. Energy-efficient commercial units with built-in safety sensors can reduce exposure, and in some cases, qualify your property for lower premiums or risk-mitigation credits.
Regular maintenance records can make or break a claim. Insurers look favorably on properties with documented inspection schedules, lint-trap cleaning logs, and certified service agreements with reputable vendors.
Basement laundry rooms or poorly ventilated closets increase risk. Properties that include drain pans, floor drains, moisture sensors, and automatic shut-off valves tend to receive stronger underwriting terms.
In uncontrolled common areas, unattended machines increase liability risk. Adding security cameras, access control, and posted rules can demonstrate proactive risk management, which underwriters note when reviewing renewals.
Your laundry service partner’s insurance certificates, indemnification clauses, and safety protocols affect your own liability profile. A partner that carries strong general liability and workers’ compensation coverage helps protect you from downstream exposure.
To strengthen your risk profile, and potentially lower premiums, consider implementing the following best practices:
Proactive laundry risk management doesn’t just reduce the chance of a claim, it can also lead to:
In many cases, these measures pay for themselves in the form of risk credits or avoided losses.
Laundry operations may represent a small piece of your property’s overall footprint, but their impact on your insurance exposure and operational risk is outsized. By upgrading equipment, documenting maintenance, and partnering with an insured, professional laundry service provider, you can protect your property, and your bottom line, from avoidable losses.
A safer laundry room isn’t just about convenience. It’s about reducing claims, protecting revenue, and keeping residents happy.