UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2001

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-15815

Krupp Insured Plus Limited Partnership

Massachusetts
(State or other jurisdiction of incorporation or organization)

04-2915281
(IRS employer identification no.)

One Beacon Street, Boston, Massachusetts
(Address of principal executive offices)

02108
(Zip Code)

(617) 523-0066
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title Name of Exchange on which Registered

Shares of Beneficial Interest None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ].
Aggregate market value of voting securities held by non-affiliates: Not applicable.
Documents incorporated by reference: see Part IV, Item 14
The exhibit index is located on pages 8-10





                                     PART I

This Form 10-K contains forward-looking statements within the meaning of section
27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act
of 1934. Actual results could differ materially from those projected in the
forward looking statements as a result of a number of factors, including those
identified herein.

ITEM 1.  BUSINESS
------

On December 20, 1985, The Krupp Corporation and The Krupp Company Limited
Partnership-IV (the "General Partners") formed Krupp Insured Plus Limited
Partnership (the "Partnership"), a Massachusetts Limited Partnership. The
Partnership raised approximately $149 million through a public offering of
limited partner interests evidenced by units of depositary receipts ("Units")
and used the net proceeds primarily to acquire participating insured mortgages
("PIMs") and mortgage backed securities ("MBS"). The Partnership considers
itself to be engaged in the industry segment of investment in mortgages.

The Partnership's investments in PIMs consist of a securitized multi-family
first mortgage loan or a sole participation interest in a Department of Housing
and Urban Development ("HUD") multi-family insured first mortgage loan, and
participation interests in the current revenue stream of the mortgaged property
and any increase in the mortgaged property's value above certain specified base
levels. The Partnership provided the funds for the first mortgage loan made to
the borrower by acquiring either a securitized first mortgage loan ("MBS"),
originated under the lending program of Fannie Mae or a sole participation
interest in a first mortgage loan originated under the Federal Housing
Administration ("FHA") lending program (collectively the "insured mortgages").
The Partnership receives the participation interests in the mortgaged property
as additional consideration for providing the funds for the first mortgage loan
and accepting a below market interest rate on the insured mortgage. The borrower
conveyed the participation interests to the Partnership through either a
subordinated promissory note and mortgage or a shared income and appreciation
agreement. Fannie Mae guarantees the principal and interest payments for the
Fannie Mae insured mortgage. HUD insures the first mortgage loan originated
under the FHA lending program. The participation interests conveyed to the
Partnership by the borrower are neither insured nor guaranteed.

The Partnership also has investments in MBS backed by single-family or
multi-family mortgage loans issued or originated by the Government National
Mortgage Association ("GNMA"), Fannie Mae or the Federal Home Loan Mortgage
Corporation ("FHLMC"). Fannie Mae and FHLMC guarantee the principal and interest
on the Fannie Mae and FHLMC MBS, respectively. GNMA guarantees the timely
payment of principal and interest on its MBS and HUD insures the pooled mortgage
loans underlying the GNMA MBS.

Although the Partnership will terminate no later than December 31, 2025 the
Partnership anticipates realizing the value of the PIMs through repayment well
before this date. Therefore, dissolution of the Partnership should occur
significantly prior to December 31, 2025.

The Partnership's investments are not subject to seasonal fluctuations. However,
the realization of the participation features of the PIMs are subject to similar
risks associated with equity real estate investments, including: reliance on the
owner's operating skills, ability to maintain occupancy levels, control
operating expenses, maintain the property and provide adequate insurance
coverage; adverse changes in general economic conditions, adverse local
conditions, and changes in governmental regulations, real estate zoning laws, or
tax laws; and other circumstances over which the Partnership may have little or
no control.

The requirements for compliance with federal, state and local regulations to
date have not adversely effected the Partnership's operations and the
Partnership does not presently anticipate adverse effects in the future.

As of December 31, 2001, there were no personnel directly employed by the
Partnership.

ITEM 2.  PROPERTIES
------
None.

ITEM 3.  LEGAL PROCEEDINGS
------
There are no material pending legal proceedings to which the Partnership is a
party or to which any of its investments is the subject.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------
None.





                                     PART II


ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
        MATTERS
------

There currently is no established trading market for the Units.

The number of investors holding Units as of December 31, 2001 was approximately
5,500. One of the objectives of the Partnership is to provide quarterly
distributions of cash flow generated by its investments in mortgages. The
Partnership presently anticipates that future operations will continue to
generate cash available for distribution. Adjustments may be made to the
distribution rate in the future due to the realization and payout of the
existing mortgages.

During August 2001, the Partnership made a special distribution of $1.25 per
Limited Partner interest from the principal proceeds and prepayment premium
received from the Boulders Apartments MBS.

During November 2000, the Partnership made a special distribution of $.33 per
Limited Partner interest from the principal proceeds and prepayment premium
received from the Chateau Bijou MBS.

During January 2000, the Partnership made a special distribution of $1.30 per
Limited Partner interest from the principal proceeds and Shared Appreciation
Interest from the LaCosta PIM.

The Partnership may make special distributions in the future if MBS or PIMs
prepay or a sufficient amount of cash is available from MBS and PIM principal
collections.

The Partnership made the following distributions, in quarterly installments, and
special distributions, to its Partners during the two years ended December 31,
2001 and 2000:


                                                          2001                                  2000
                                                 Amount          Per Unit            Amount              Per Unit
   Distributions:
        Limited Partners                       $  3,000,040       $   .40         $  5,700,076             $  .76
        General Partners                             78,220            -                97,014                 -
                                               ------------                       ------------

                                                  3,078,260                          5,797,090
                                               ------------                       ------------

   Special Distributions:
        Limited Partners                          9,375,124       $  1.25           12,225,162             $ 1.63
                                               ------------                       ------------

         Total Distributions                   $ 12,453,384                       $ 18,022,252
                                               ============                       ============












ITEM 6.  SELECTED FINANCIAL DATA
------

The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. This information should
be read in conjunction with Management's Discussion and Analysis of Financial
Condition and Results of Operations and the Financial Statements and
Supplementary Data, which are included in Item 7 and Item 8, (Appendix A) of
this report, respectively.

                               2001               2000                1999               1998                1997
                               ----               ----                ----               ----                ----
Total revenues            $  3,022,454       $   3,587,833        $  4,215,833       $  4,823,813         $ 6,078,663

Net income                   2,540,547           3,038,185           3,610,232          4,171,014           4,743,768
Net income allocated to:
  Limited Partners           2,464,331           2,947,039           3,501,925          4,045,884           4,601,455


   Average Per Unit                .33                 .39                 .47               . 54                . 61

General Partners                76,216              91,146             108,307            125,130             142,313

Total assets at:
December 31                 29,901,042          39,651,355          54,564,577         57,367,612          67,795,436

Distributions to:
 Limited Partners            3,000,040           5,700,076           5,700,076          5,700,075           5,700,093
 Average per Unit                  .40                 .76                 .76                .76                 .76
 Special to Limited Partners 9,375,124          12,225,162                -             8,400,111           4,575,060
 Average per Unit                 1.25                1.63                -                  1.12                 .61

 General Partners               78,220              97,014             112,626            137,665             172,798


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS
------

Certain statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations and elsewhere in this Form 10-K constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the Partnership's actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements. These factors include, among other
things, federal, state or local regulations; adverse changes in general economic
or local conditions; prepayments of mortgages; failure of borrowers to pay
participation interests due to poor operating results at properties underlying
the mortgages; uninsured losses and potential conflicts of interest between the
Partnership and its Affiliates, including the General Partners.

Liquidity and Capital Resources

At December 31, 2001 the Partnership had liquidity consisting of cash and cash
equivalents of approximately $1.4 million as well as the cash flow provided by
its investments in the PIMs and MBS. The Partnership anticipates that these
sources will be adequate to provide the Partnership with sufficient liquidity to
meet its obligations as well as to provide distributions to its investors.

The most significant demand on the Partnership's liquidity is quarterly
distributions paid to investors, which are approximately $750,000 per quarter.
Funds for the quarterly distributions come from the monthly principal and
interest payments received on the PIMs and MBS, the principal prepayments of the
PIMs and MBS, interest earned on the Partnership's cash and cash equivalents and
cash reserves. The portion of distributions attributable to the principal
collections and cash reserves reduces the capital resources of the Partnership.
As the capital resources of the Partnership decrease, the total cash flows to
the Partnership also will decrease and over time will result in periodic
adjustments to the distributions paid to investors. The General Partners
periodically review the distribution rate to determine whether an adjustment is
necessary based on projected future cash flows. In general, the General Partners
try to set a distribution rate that provides for level quarterly distributions.
Based on current projections, the General Partners expect that the Partnership
will reduce the distribution rate of $.10 per Limited Partner interest per
quarter to $.06 per Limited Partner interest per quarter with the May 2002
distribution.



In addition to providing insured or guaranteed monthly principal and basic
interest payments, the Partnership's investments in the PIMs also may provide
additional income through a participation interest in the underlying properties.
However, this payment is neither guaranteed nor insured and depends on the
successful operations of the underlying properties.

The Partnership received a prepayment of the Royal Palm Place PIM. On January 2,
2002, the Partnership received $378,480 of Shared Appreciation Interest and
$121,490 of Minimum Additional Interest. On February 27, 2002 the Partnership
received $5,563,531 representing the principal proceeds on the first mortgage.
The Partnership has declared a special distribution of $.80 per Limited Partner
interest consisting of Shared Appreciation Interest and prepayment proceeds
which will be paid in the first quarter of 2002.

The Partnership received a payoff of the Boulders Apartments MBS on July 9, 2001
for $9,045,042. The Partnership also received a prepayment premium of $306,000
from this payoff. On August 17, 2001, the Partnership paid a special
distribution of $1.25 per Limited Partner interest from the proceeds received.

The Partnership received a payoff from the Chateau Bijou MBS on September 19,
2000 for $2,266,064. During October the Partnership received a 9% prepayment
premium of $203,946 from this payoff. The Partnership paid a special
distribution in November of $.33 per Limited Partner interest from the proceeds
received.

In December 1999, the Partnership received a prepayment in the amount of
$9,746,923 representing the outstanding principal balance due on the La Costa
PIM. The Borrower defaulted on the first mortgage loan underlying the PIM in
June of 1999. The Partnership continued to receive its full principal and
interest payments until the default was resolved as GNMA guaranteed those
payments to the Partnership. The Partnership did not receive any participation
interest as a result of this default. However, the Partnership received $10,000
from the Borrower to release the Subordinated Promissory Note. This payment was
classified as Shared Appreciation Interest. On January 11, 2000, the Partnership
paid a special distribution to the investors of $1.30 per Limited Partner
interest.

With the payoff of the Royal Palm Place PIM in January, 2002, the Partnership's
only remaining PIM investment is backed by the first mortgage loan on Vista
Montana. Presently, the General Partners do not expect Vista Montana to pay the
Partnership any participation interest or to be sold or refinanced during 2002.
However, if favorable market conditions provide the borrower an opportunity to
sell the property, there are no contractual obligations remaining that would
prevent a prepayment of the underlying first mortgage. Vista Montana operates
under a long-term restructure program. The Partnership agreed in 1993 to change
the original participation terms and to permanently reduce the rate on the first
mortgage loan to 7.375% per annum when construction was significantly delayed.
The borrower also raised additional equity at the time of the modification by
selling investment tax credits. These funds have been held in escrow and are
used to fund operating deficits. Although occupancy in the Phoenix sub-market is
generally in the low 90% range, the property is currently 80% occupied because
of a fire. Repairs to the property are underway and will be covered by the
borrower's property insurance.

The Partnership has the option to call its remaining PIM by accelerating the
maturity date of the loan. The Partnership will determine the merits of
exercising the call option as economic conditions warrant. Such factors as the
condition of the asset, local market conditions, interest rates and available
financing will have an impact on this decision.

Critical Accounting Policy

The Partnership's critical accounting policy relates primarily to revenue
recognition related to the participation feature of the Partnership's PIM
investments. The Partnership's policy is as follows:

Basic interest on PIMs is recognized at the stated rate of the Federal Housing
Administration insured mortgage (less the servicer's fee) or the stated coupon
rate of the Fannie Mae MBS. The Partnership recognizes interest related to the
participation features when the amount becomes fixed and the transaction that
gives rise to such amount is consummated.

ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------

Assessment of Credit Risk

The Partnership's investments in mortgages are guaranteed or insured by GNMA,
Fannie Mae, FHLMC or HUD and therefore the certainty of their cash flows and the
risk of material loss of the amounts invested depends on the creditworthiness of
these entities.

Fannie Mae is a federally chartered private corporation that guarantees
obligations originated under its programs. FHLMC is a federally chartered
corporation that guarantees obligations originated under its programs and is
wholly-owned by the twelve Federal Home Loan Banks. These obligations are not
guaranteed by the U.S. Government or the Federal Home Loan Bank Board. GNMA
guarantees the full and timely payment of principal and basic interest on the
securities it issues, which represents interest in pooled mortgages insured by
HUD. Obligations insured by HUD, an agency of the U.S. Government, are backed by
the full faith and credit of the U.S. Government.




The Partnership includes in cash and cash equivalents approximately $1.1 million
of commercial paper, which is issued by entities with a credit rating equal to
one of the top two rating categories of a nationally recognized statistical
rating organization.

Interest Rate Risk

The Partnership's primary market risk exposure is to interest rate risk, which
can be defined as the exposure of the Partnership's net income, comprehensive
income or financial condition to adverse movements in interest rates. At
December 31, 2001, the Partnership's PIMs and MBS comprise the majority of the
Partnership's assets. Decreases in interest rates may accelerate the prepayment
of the Partnership's investments. The Partnership does not utilize any
derivatives or other instruments to manage this risk as the Partnership plans to
hold all of its investments to expected maturity.

The Partnership monitors prepayments and considers prepayment trends, as well as
distribution requirements of the Partnership, when setting regular distribution
policy. For MBS, the fund forecasts prepayments based on trends in similar
securities as reported by statistical reporting entities such as Bloomberg. For
PIMs, the Partnership incorporates prepayment assumptions into planning as
individual properties notify the Partnership of the intent to prepay or as they
mature.

The table below provides information about the Partnership's financial
instruments that are sensitive to changes in interest rates. For mortgage
investments, the table presents principal cash flows and related weighted
average interest rates ("WAIR") by expected maturity dates. The expected
maturity date is contractual maturity adjusted for expectations of prepayments.




                                    Expected maturity dates ($ in thousands)


                    2002      2003      2004      2005      2006      Thereafter      Total              Fair
                                                                                       Face              Value
                                                                                       Value


Interest-sensitive assets:

MBS               $    256  $    231  $   211   $   194 $    181  $         7,844   $      8,917     $        9,411
WAIR                 8.41%     8.41%    8.41%     8.41%    8.41%             8.41%          8.41%

PIMs                 5,667       111      120       129      139            12,613        18,779            19,649

WAIR                 7.38%     7.38%    7.38%     7.38%    7.38%             7.38%          7.67%
                  --------  --------  -------   ------- --------  ----------------  -------------    --------------

Total Interest-
sensitive assets  $  5,923  $    342  $   331   $   323 $    320  $         20,457  $      27,696    $      29,060
                  ========  ========  =======   ======= ========  ================  =============    ==============









Results of Operations

The following discussion relates to the operation of the Partnership during the
years ended December 31, 2001, 2000 and 1999.
                                                                        (Amounts in thousands)
                                                            2001                  2000               1999
                                                            ----                  ----               ----
   Interest income on PIMs:
       Basic interest                                     $ 1,446             $  1,423             $  2,085
       Participation interest                                 306                  214                    -
   Interest income on MBS                                   1,171                1,702                1,900
   Other interest income                                      100                  249                  231
   Partnership expenses                                      (390)                (449)                (505)
   Amortization of prepaid fees
    and expenses                                              (92)                (101)                (101)
                                                          -------             --------             --------

      Net income                                          $ 2,541             $  3,038             $  3,610
                                                          =======             ========             ========



Net income decreased for 2001 when compared with 2000 primarily due to decreases
in interest income on MBS and other interest income. This is partially offset by
an increase in participation interest and a decrease in asset management fees.
Interest income on MBS decreased in 2001 when compared to 2000 primarily due to
the payoffs of the Boulders Apartments MBS in July 2001 and the Chateau Bijou
MBS in September of 2000. Other interest income decreased due to lower average
interest rates earned on cash balances available for short-term investing in
2001 as compared with 2000. Participation interest increased due to the
collection of a prepayment premium from the Boulders Apartments MBS payoff in
July 2001. The decrease in asset management fees is due to the Partnership's
asset base declining.

Net income decreased for 2000 when compared with 1999 due primarily to the
decrease in interest income on PIMs and MBS. Basic interest on PIMs decreased in
2000 as compared to 1999 due primarily to the prepayment of the LaCosta PIM in
December 1999. MBS interest income decreased in 2000 as compared to 1999
primarily due to principal collections received on the remaining MBS investments
and the Chateau Bijou MBS payoff in September 2000. Participation interest
increased in 2000 compared with 1999 due to the Chateau Bijou MBS prepayment
premium and Shared Appreciation Interest from the LaCosta PIM payoff received in
2000. Expenses decreased in 2000 as compared with 1999 due primarily to lower
asset management fees caused by a declining asset base.

ITEM 8.      FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
------

See Appendix A to this report.

ITEM 9.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
------

None.

                                    PART III

ITEM 10.         DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
-------

The Partnership has no directors or executive officers. Information as to the
directors and executive officers of The Krupp Corporation, which is a General
Partner of the Partnership and is the general partner of The Krupp Company
Limited Partnership-IV, the other General Partner of the Partnership, is as
follows:

                                                          Position with
              Name and Age                                The Krupp Corporation

              Douglas Krupp (55)                          Co-Chairman, President and Director
              George Krupp (57)                           Co-Chairman, President and Director
              Robert A. Barrows (44)                      Vice President and Chief Accounting Officer




     Douglas Krupp  co-founded  and serves as  Co-Chairman  and Chief  Executive
     Officer  of The  Berkshire  Group,  an  integrated  real  estate  financial
     services  firm engaged in real estate  acquisitions,  property  management,
     investment  sponsorship,  venture capital  investing,  mortgage banking and
     financial  management,  and  ownership of two operating  companies  through
     private equity investments.  Mr. Krupp has held the position of Co-Chairman
     since The Berkshire  Group was  established as The Krupp  Companies in 1969
     and he has  served as the  Chief  Executive  Officer  since  1992.  He is a
     graduate of Bryant College where he received an honorary  Doctor of Science
     in Business Administration in 1989.

     George Krupp is the Co-Founder and  Co-Chairman of The Berkshire  Group, an
     integrated  real  estate  financial  services  firm  engaged in real estate
     acquisitions,  property management, investment sponsorship, venture capital
     investing,  mortgage banking and financial management, and ownership of two
     operating companies through private equity investments.  Mr. Krupp has held
     the position of Co-Chairman  since The Berkshire  Group was  established as
     The Krupp Companies in 1969. Mr. Krupp has been an instructor of history at
     the New Jewish High School in Waltham,  Massachusetts  since  September  of
     1997.  Mr.  Krupp  attended  the  University  of  Pennsylvania  and Harvard
     University  and holds a Master's  Degree in History from Brown  University.
     Douglas and George Krupp are brothers.

     Robert A. Barrows is Senior Vice President and Chief  Financial  Officer of
     Berkshire  Mortgage Finance.  Mr. Barrows has held several positions within
     The  Berkshire  Group since  joining  the company in 1983 and is  currently
     responsible for accounting,  financial reporting and treasury functions for
     Berkshire Mortgage Finance. Prior to joining The Berkshire Group, he was an
     audit supervisor for Coopers and Lybrand L.L.P. in Boston. He received a B.S.
     degree from Boston College and is a Certified Public Accountant.

ITEM 11.  EXECUTIVE COMPENSATION
-------

The Partnership has no directors or executive officers.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
-------

As of December 31, 2001 no person owned of record or was known by the General
Partners to own beneficially more than 5% of the Partnership's 7,500,099
outstanding Units. The only interests held by management or its affiliates
consist of its General Partner and Corporate Limited Partner Interests.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
-------

Information required under this Item is contained in Note F to the Partnership's
financial statements presented in Appendix A to this report.

                                                        PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULE AND REPORTS ON FORM 8-K
-------

(a)     1.    Financial  Statements - see Index to Financial  Statements and
              Schedule included under Item 8, Appendix A, on page F-2 of
              this report.

        2.    Financial Statement Schedule - see Index to Financial Statements
              and Schedule included under Item 8, Appendix A, on page F-2 of
              this report. All other schedules are omitted as they are not
              applicable, not required or the information is provided in the
              Financial Statements or the Notes thereto.

(b)     Reports on Form 8-K

        During the last quarter of the year ended December 31, 2001 the
        Partnership did not file any reports on Form 8-K.

(c)     Exhibits:

        Number and Description
        Under Regulation S-K

        The following reflects all applicable Exhibits required under Item 601
of Regulation S-K:

        (4)   Instruments defining the rights of security holders including indentures:
              ------------------------------------------------------------------------





        (4.1)        Amended Agreement of Limited Partnership dated as of June
                     27, 1986 [Exhibit A to Prospectus included in Amendment
                     No. 1 of Registrant's Registration Statement on Form S-11
                     dated July 2, 1986 (File No. 33-2520)].*

        (4.2)        Subscription Agreement whereby a subscriber agrees to
                     purchase Units and adopts the provisions of the Amended
                     Agreement of Limited Partnership [Exhibit D to Prospectus
                     included in Amendment No. 1 of Registrant's Registration
                     Statement on Form S-11 dated July 2, 1986 (File No.
                     33-2520)].*

        (4.3)        Eighth Amendment and Restatement of Certificate of Limited
                     Partnership filed with the Massachusetts Secretary of State
                     on February 6, 1987 [Exhibit 4.3 to Registrant's Report on
                     Form 10-K for the year ended December 31, 1986 (File No.
                     33-2520)].*

        (10)  Material Contracts:
              ------------------

                     Vista Montana

        (10.1)       Subordinated Promissory Note, dated March 31, 1988, between
                     VM Associates Limited Partnership,  an Arizona Limited
                     Partnership  and GMAC  Mortgage  Corporation  of PA.
                     [Exhibit  19.7 to  Registrant's  Report on Form 10-Q for the
                     Quarter Ended March 31, 1988 (File No. 0-15815)].*

        (10.2)       Subordinated Multi-family Deed of Trust, dated March 31,
                     1988, between VM Associates Limited Partnership, an Arizona
                     Limited Partnership, and GMAC Mortgage Corporation of PA
                     [Exhibit 19.8 to Registrant's Report on Form 10-Q for the
                     Quarter Ended March 31, 1988 (File No. 0-15815)].*

        (10.3)       Assignment of Subordinated Deed of Trust, dated March 31,
                     1988,  between GMAC Mortgage  Corporation  of PA, and
                     Krupp Insured Plus-II Limited  Partnership, a Massachusetts
                     Limited  Partnership.  [Exhibit 19.9 to Registrant's
                     Report on Form 10-Q for the Quarter Ended March 31, 1988
                     (File No. 0-15815)].*

        (10.4)       Assignment of Closing Documents, dated July 12, 1988 by and
                     between Krupp Insured Plus-II Limited Partnership
                     ("KIP-II"), a Massachusetts limited partnership, and Krupp
                     Insured Plus Limited Partnership ("KIP-I"), a Massachusetts
                     limited partnership. [Exhibit 19.10 to Registrant's Report
                     on Form 10-Q for the Quarter Ended June 30, 1988 (File No.
                     0-15815)].*

        (10.5)       Deed of Trust, dated March 31, 1988 between VM Associates
                     Limited Partnership, an Arizona limited partnership and
                     Transamerica Title Insurance Company, a California
                     corporation. [Exhibit 19.11 to Registrant's Report on Form
                     10-Q for the Quarter Ended September 30, 1988 (File No.
                     0-15815)].*

        (10.6)       Deed of Trust Note, dated March 31, 1988, between VM
                     Associates Limited Partnership, an Arizona limited
                     partnership and GMAC Mortgage Corporation of PA, a
                     Pennsylvania corporation. [Exhibit 19.12 to Registrant's
                     Report on Form 10-Q for the Quarter Ended September 30,
                     1988 (File No. 0-15815)].*

        (10.7)       Assignment of Mortgage and Collateral Documents, dated
                     March 31, 1988 by and between Krupp Insured Plus-II Limited
                     Partnership, a Massachusetts limited partnership and GMAC
                     Mortgage Corporation of PA, a Pennsylvania corporation.
                     [Exhibit 19.13 to Registrant's Report on Form 10-Q for the
                     Quarter Ended September 30, 1988 (File No. 0-15815)].*

        (10.8)       Servicing Agreement, dated March 31, 1988 by and between
                     Krupp Insured Plus-II Limited Partnership, a Massachusetts
                     limited partnership and GMAC Mortgage Corporation of PA, a
                     Pennsylvania corporation. [Exhibit 19.14 to Registrant's
                     Report on Form 10-Q for the Quarter Ended September 30,
                     1988 (File No. 0-15815)].*

         (10.9)      Modification to the First mortgage loan and subordinated
                     Promissory Note,  dated June 7, 1993, by and between
                     Krupp Insured Plus-II Limited Partnership and V.M.
                     Associates Limited Partnership.  [Exhibit 10.28 to
                     Registrant's Report on Form 10-K for the Year Ended
                     December 31, 1994 (File No. 0-15815)].*




        (10.10)      Assignment of interest from Krupp Insured Plus Limited
                     Partnership II to Krupp Insured Plus Limited  Partnership,
                     dated February 6, 1995.  [Exhibit 10.29 to  Registrant's
                     Report on Form 10-K for the Year Ended December 31, 1994
                     (File No. 0-15815)].*

                     Royal Palm Place

        (10.11)      Supplement to Prospectus for FNMA Pool No. MB-109057.
                     [Exhibit 10.30 to Registrant's  Report on Form 10-K for the
                     year ended December 31, 1995(File No. 0-15815)].*

        (10.12)      Subordinated  Multifamily  Mortgage  dated  March 20, 1991
                     between Royal Palm Place,  Ltd.,  a Florida  limited
                     partnership (the  "Mortgagor") and Krupp Insured Plus-III
                     Limited  Partnership (the  "Mortgagee").  [Exhibit 19.2
                     to Registrant's Report on Form 10-Q for the Quarter Ended
                     June 30, 1991 (File No. 0-15815)].*

        (10.13)      Amended and Restated Subordinated Promissory Note dated
                     December 1, 1995 between Royal Palm Place, Ltd., a Florida
                     limited partnership (the "Mortgagor") and Krupp Insured
                     Plus-III Limited Partnership (the "Holder") [Exhibit 10.32
                     to Registrant's Report on Form 10-K for the year ended
                     December 31, 1995(File No.0-15815)].*

        (10.14)      Modification Agreement dated March 20, 1991 by and between
                     Royal Palm Place, Ltd., a Florida limited  partnership
                     and Krupp Insured Plus-III Limited Partnership.
                     [Exhibit 19.4 to Registrant's Report on Form 10-Q for the
                     Quarter Ended June 30, 1991 (File No. 0-15815)].*

        (10.15)      Participation  Agreement dated March 20, 1991 between Krupp
                     Insured Plus-III Limited Partnership and Krupp Insured
                     Plus Limited  Partnership.  [Exhibit 19.1 to Registrant's
                     Report on Form 10-Q for the Quarter Ended September 30,
                     1991 (File No. 0-15815)].*

        * Incorporated by reference.

















                                   SIGNATURES






Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, on the 22nd day of March,
2002.

                                    KRUPP INSURED PLUS LIMITED PARTNERSHIP

                                    By:  The Krupp Corporation,
                                         a General Partner


                                    By:  /s/ Douglas Krupp
                                        ----------------------------------------
                                        Douglas Krupp, Co-Chairman
                                        (Principal Executive Officer) and Director of
                                        The Krupp Corporation


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities indicated, on the 22nd day of March, 2002.

Signatures                                           Title(s)
----------                                           --------


 /s/ Douglas Krupp                   Co-Chairman (Principal Executive Officer),  President and Director of The Krupp
-------------------------------
Douglas Krupp                                        Corporation, a General Partner of the Registrant.



 /s/ George Krupp                    Co-Chairman (Principal Executive Officer) and Director of The Krupp Corporation, George Krupp
-------------------------------
a General Partner of the Registrant



 /s/ Robert A. Barrows               Vice President and Chief Accounting Officer of The Krupp Corporation, a
-------------------------------
Robert A. Barrows                                    General Partner of the Registrant.












                                                      APPENDIX A

                                        KRUPP INSURED PLUS LIMITED PARTNERSHIP











                                           FINANCIAL STATEMENTS AND SCHEDULE
                                                  ITEM 8 of FORM 10-K

                                ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION
                                         For the Year Ended December 31, 2001



























                                        KRUPP INSURED PLUS LIMITED PARTNERSHIP

                                      INDEX TO FINANCIAL STATEMENTS AND SCHEDULES



Report of Independent Accountants                                                                                 F-3

Balance Sheets at December 31, 2001 and 2000                                                                      F-4

Statements of Income and Comprehensive Income for the Years Ended
December 31, 2001, 2000 and 1999                                                                                  F-5

Statements of Changes in Partners' Equity for the Years
Ended December 31, 2001, 2000 and 1999                                                                            F-6

Statements of Cash Flows for the Years
Ended December 31, 2001, 2000 and 1999                                                                            F-7

Notes to Financial Statements                                                                              F-8 - F-15




All schedules are omitted as they are not applicable or not required, or the
information is provided in the financial statements or the notes thereto.














                        REPORT OF INDEPENDENT ACCOUNTANTS




To the Partners of
Krupp Insured Plus Limited Partnership:

In our opinion, the financial statements listed in the accompanying index
present fairly, in all material respects, the financial position of Krupp
Insured Plus Limited Partnership (the "Partnership") at December 31, 2001 and
2000 and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 2001 in conformity with accounting
principles generally accepted in the United States of America. These financial
statements are the responsibility of the Partnership's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of America which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.








PricewaterhouseCoopers LLP
Boston, Massachusetts
March 22, 2002











                                       KRUPP INSURED PLUS LIMITED PARTNERSHIP

                                                   BALANCE SHEETS

                                             December 31, 2001 and 2000


                                                       ASSETS

                                                                           2001                      2000
                                                                           ----                      ----

 Participating Insured Mortgages
  ("PIMs") (Notes B, C, H and I)                                      $  18,779,477            $  18,875,248
 Mortgage-Backed Securities and insured
  mortgage ("MBS") (Notes B, D and H)                                     9,410,920               18,864,480
                                                                      -------------            -------------

     Total mortgage investments                                          28,190,397               37,739,728

 Cash and cash equivalents (Notes B and H)                                1,422,582                1,460,786
 Interest receivable and other assets                                       190,282                  260,797
 Prepaid acquisition fees and expenses, net of
  accumulated amortization of $785,095 and
  $725,937, respectively (Note B)                                            59,157                  118,315
 Prepaid participation servicing fees, net of
  accumulated amortization of $292,428 and
  $259,323, respectively (Note B)                                            38,624                   71,729
                                                                      -------------            -------------

     Total assets                                                     $  29,901,042            $  39,651,355
                                                                      =============            ==============


                                          LIABILITIES AND PARTNERS' EQUITY

 Liabilities                                                          $      17,877            $      17,650
                                                                      -------------            -------------

 Partners' equity (deficit) (Notes A, E and I):

   Limited Partners                                                      29,633,496               39,544,329
    (7,500,099 Limited Partner interests
     outstanding)

   General Partners                                                        (249,219)                (247,215)

   Accumulated Comprehensive Income (Note B)                                498,888                  336,591
                                                                      -------------            -------------

     Total Partners' equity                                              29,883,165               39,633,705
                                                                      -------------            -------------

     Total liabilities and Partners' equity                           $  29,901,042            $  39,651,355
                                                                      =============            =============









                     The accompanying notes are an integral
                        part of the financial statements.




                                           KRUPP INSURED PLUS LIMITED PARTNERSHIP

                                         STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

                                    For the Years Ended December 31, 2001, 2000 and 1999



                                                                         2001               2000                 1999
                                                                     ------------       ------------         ------------

Revenues:
   Interest income - PIMs
       Basic interest                                                $  1,446,220       $  1,422,912         $  2,085,273
       Participation interest                                             306,000            213,946                -
   Interest income - MBS                                                1,170,585          1,701,993            1,899,734
   Other interest income                                                   99,649            248,982              230,826
                                                                     ------------       ------------         ------------

            Total revenues                                              3,022,454          3,587,833            4,215,833
                                                                     ------------       ------------         ------------

Expenses:
   Asset management fee to an affiliate (Note F)                          243,650            295,192              376,755
   Expense reimbursements to affiliates (Note F)                           53,989             56,015               42,279
   Amortization of prepaid fees and expenses (Note B)                      92,263            101,056              101,059
   General and administrative                                              92,005             97,385               85,508
                                                                     ------------       ------------         ------------

            Total expenses                                                481,907            549,648              605,601
                                                                     ------------       ------------         ------------

Net income (Note G)                                                     2,540,547          3,038,185            3,610,232

Other Comprehensive Income:

     Net change in unrealized gain on MBS                                 162,297             72,745             (599,917)
                                                                     ------------       ------------         ------------


Total Comprehensive Income                                           $  2,702,844       $  3,110,930         $  3,010,315
                                                                     ============       ============         ============

Allocation of net income (Notes E and G):

     Limited Partners                                                $  2,464,331       $  2,947,039         $  3,501,925
                                                                     ============       ============         ============

     Average net income per Limited Partner Interest                 $        .33       $        .39         $        .47
                                                                     ============       ============         ============
       (7,500,099 Limited Partner interests outstanding)

     General Partners                                                $     76,216       $     91,146         $    108,307
                                                                     ============       ============         =============












                     The accompanying notes are an integral
                        part of the financial statements.



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY

              For the Years Ended December 31, 2001, 2000 and 1999



                                                                                       Accumulated              Total
                                                   Limited          General           Comprehensive            Partners'
                                                  Partners          Partners             Income                 Equity
                                               -------------      ------------        --------------        -------------

Balance at December 31, 1998                   $  56,720,679      $  (237,028)        $    863,763          $  57,347,414

Net income                                         3,501,925          108,307                -                  3,610,232

Quarterly distributions                           (5,700,076)        (112,626)               -                 (5,812,702)

 Change in unrealized gain
            on MBS                                     -               -                  (599,917)              (599,917)
                                               -------------      -----------         ------------          -------------

 Balance at December 31, 1999                     54,522,528         (241,347)             263,846             54,545,027

Net income                                         2,947,039           91,146                 -                 3,038,185

Quarterly distributions                           (5,700,076)         (97,014)                -                (5,797,090)

Special distributions                            (12,225,162)            -                     -              (12,225,162)

Change in unrealized gain
  on MBS                                               -                 -                  72,745                 72,745
                                               -------------      -----------         ------------         --------------

Balance at December 31, 2000                      39,544,329         (247,215)             336,591             39,633,705

Net income                                         2,464,331           76,216                -                  2,540,547

Quarterly distributions                           (3,000,040)         (78,220)               -                (3,078,260)

Special distribution                              (9,375,124)            -                   -                (9,375,124)

Change in unrealized gain
  on MBS                                               -               -                   162,297               162,297
                                               -------------      -----------         ------------          ------------

Balance at December 31, 2001                   $  29,633,496      $  (249,219)        $    498,888          $ 29,883,165
                                               =============      ===========         ============          ============




                     The accompanying notes are an integral
                        part of the financial statements.



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS

              For the Years Ended December 31, 2001, 2000 and 1999


                                                                             2001                 2000                1999
                                                                             ----                 ----                ----
Operating activities:
Net income                                                             $    2,540,547        $   3,038,185         $ 3,610,232
Adjustments to reconcile net income to net
   cash provided by operating activities:
      Amortization of prepaid fees and expenses                                92,263              101,056             101,059
      Shared Appreciation Interest and prepayment premiums                   (306,000)            (213,946)              -
      Premium amortization                                                      -                   52,528               6,630
Changes in assets and liabilities:
         Decrease in interest receivable
               and other assets                                                70,515               59,197              47,786
         Increase (decrease) in liabilities                                       227               (1,900)               (648)
                                                                         ------------        -------------         -----------

Net cash provided by operating activities                                   2,397,552            3,035,120           3,765,059
                                                                         ------------        -------------         -----------

Investing activities:
   Principal collections and prepayments on PIMs
      including Shared Appreciation Interest of $10,000 in 2000                95,771              167,751          10,041,106
   Principal collections on MBS including a prepayment premium
      of $306,000 in 2001 and $203,946 in 2000.                             9,921,857            3,278,080           1,355,494
                                                                         ------------        -------------         -----------

Net cash provided by investing activities                                  10,017,628            3,445,831          11,396,600
                                                                         ------------        -------------         -----------

Financing activities:
   Quarterly distributions                                                 (3,078,260)          (5,797,090)         (5,812,702)
   Special distributions                                                   (9,375,124)         (12,225,162)              -
                                                                         ------------        -------------        ------------

Net cash used for financing activities                                    (12,453,384)         (18,022,252)         (5,812,702)
                                                                         ------------        -------------        ------------

Net (decrease) increase in cash and cash equivalents                          (38,204)         (11,541,301)          9,348,957

Cash and cash equivalents, beginning of period                              1,460,786           13,002,087           3,653,130
                                                                         ------------        -------------         -----------

Cash and cash equivalents, end of period                                 $  1,422,582        $   1,460,786        $ 13,002,087
                                                                         ============        =============        ============

Non cash activities:
   Increase (decrease) in Fair Value of MBS                              $    162,297        $      72,745        $   (599,917)
                                                                         ============        =============        ============




                     The accompanying notes are an integral
                        part of the financial statements.



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS

A.      Organization

        Krupp Insured Plus Limited Partnership (the "Partnership") is a
        Massachusetts Limited Partnership. The Partnership was organized for the
        purpose of investing in multi-family loans and mortgage-backed
        securities. The General Partners of the Partnership are The Krupp
        Corporation and The Krupp Company Limited Partnership-IV and the
        Corporate Limited Partner is Krupp Depositary Corporation. The
        Partnership terminates on December 31, 2025, unless terminated earlier
        upon the occurrence of certain events as set forth in the Partnership
        Agreement.

        The Partnership commenced the public offering of Units on July 7, 1986
        and completed its public offering having sold 7,499,999 Units for
        $149,489,830 net of purchase volume discounts of $510,150 as of January
        27, 1987. In addition, Krupp Depositary Corporation owns 100 Units.

B.      Significant Accounting Policies

        The Partnership uses the following accounting policies for financial
        reporting purposes which differ in certain respects from those used for
        federal income tax purposes (Note G):

        Basis of Presentation

        The accompanying financial statements have been prepared on the accrual
        basis of accounting in accordance with accounting principles generally
        accepted in the United States of America ("GAAP").

        MBS

        The Partnership, in accordance with Financial Accounting Standards
        Board's Statement 115, "Accounting for Certain Investments in Debt and
        Equity Securities" (FAS 115), classifies its MBS portfolio as
        available-for-sale. As such the Partnership carries its MBS at fair
        market value and reflects any unrealized gains (losses) as a separate
        component of Partners' equity. The Partnership amortizes purchase
        premiums or discounts over the life of the underlying mortgages using
        the effective interest method.

        PIMs

        The Partnership accounts for its MBS portion of a PIM in accordance with
        FAS 115 under the classification of held to maturity. The Partnership
        carries the Fannie Mae MBS at amortized cost. The insured mortgage
        portion of the Federal Housing Administration PIM (FHA PIM) is carried
        at amortized cost. The Partnership does not establish loan loss reserves
        as its investments are fully insured by the FHA.

        Basic interest on PIMs is recognized at the stated rate of the Federal
        Housing Administration insured mortgage (less the servicer's fee) or the
        stated coupon rate of the Fannie Mae MBS. The Partnership recognizes
        interest related to the participation features when the amount becomes
        fixed and the transaction that gives rise to such amount is consummated.

        Cash and Cash Equivalents

        The Partnership includes all short-term investments with maturities of
        three months or less from the date of acquisition in cash and cash
        equivalents. The Partnership invests its cash primarily in commercial
        paper and money market funds with a commercial bank and has not
        experienced any loss to date on its invested cash.






                                    Continued



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued


B.      Significant Accounting Policies, continued

        Prepaid Fees and Expenses

        Prepaid fees and expenses represent prepaid acquisition fees and
        expenses and prepaid participation servicing fees paid for the
        acquisition and servicing of PIMs. The Partnership amortizes the prepaid
        acquisition fees and expenses using a method that approximates the
        effective interest method over a period of ten to twelve years, which
        represents the estimated life of the underlying mortgage.

        The Partnership amortizes the prepaid participation servicing fees using
        a method that approximates the effective interest method over a ten year
        period beginning from the acquisition of the Fannie Mae MBS or final
        endorsement of the FHA loan.

        Upon the repayment of a PIM, any unamortized acquisition fees and
        expenses and unamortized participation servicing fees related to such
        loan are expensed.

        Income Taxes

        The Partnership is not liable for federal or state income taxes because
        Partnership income is allocated to the partners for income tax purposes.
        If the Partnership's tax returns are examined by the Internal Revenue
        Service or state taxing authority and such an examination results in a
        change in Partnership taxable income, such change will be reported to
        the partners.

        Estimates and Assumptions

        The preparation of financial statements in accordance with GAAP requires
        management to make estimates and assumptions that affect the reported
        amount of assets and liabilities, contingent assets and liabilities and
        revenues and expenses during the period. Actual results could differ
        from those estimates.

C.      PIMs

        At December 31, 2001 and 2000, the Partnership had investments in two
        PIMs. The Partnership's PIMs consist of one Fannie Mae MBS representing
        the securitized first mortgage loan on the underlying property and one
        participation interest in a first mortgage loan originated under the FHA
        lending program on the underlying property (collectively the "insured
        mortgages"). The Partnership also has participation interests in the
        revenue stream and appreciation of the underlying properties above
        specified thresholds. The borrower conveys these participation features
        to the Partnership generally through a subordinated promissory note and
        mortgage (the "Agreement").

        The Partnership receives monthly payments of principal and basic
        interest that are guaranteed by Fannie Mae on the MBS and insured by HUD
        on the FHA mortgage loan. The Partnership may receive income related to
        its participation interests in the underlying property, however, these
        amounts are neither insured nor guaranteed.

        Generally, the participation features consist of the following: (i)
        "Minimum Additional Interest" which is at the rate of .5% per annum
        calculated on the unpaid principal balance of the first mortgage on the
        underlying property, (ii) "Shared Income Interest" which is 30% of the
        monthly gross rental income generated by the underlying property in
        excess of a specified base, limited to the extent that it exceeds the
        amount of Minimum Additional Interest earned during such month or 25% of
        distributable surplus cash and (iii) "Shared Appreciation Interest"
        which is 30% of any increase in the value of the underlying property in
        excess of a specified base or 25% of the net sales proceeds.

        Payment of participation interest from the operations of the property is
        limited to 50% of net revenue or Surplus Cash as defined by Fannie Mae
        or HUD, respectively. The aggregate amount of Minimum Additional
        Interest, Shared Income Interest and Shared Appreciation Interest
        payable by the underlying borrower on the maturity date generally cannot
        exceed 50% of any increase in value of the property over certain
        thresholds.


                                    Continued




                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued

C.      PIMs, continued

        Shared Appreciation Interest is payable when one of the following
        occurs: (1) the sale of the underlying property to an unrelated third
        party on a date which is later than five years from the date of the
        Agreement, (2) the maturity date or accelerated maturity date of the
        Agreement, or (3) prepayment of amounts due under the Agreement and the
        insured mortgage.

        The borrower may prepay the first mortgage loan subject to a 9%
        prepayment premium in years six through nine, a 1% prepayment premium in
        year ten and no prepayment premium thereafter.

        Under the Agreement, upon giving twelve months written notice, the
        Partnership can accelerate the maturity date of the Agreement to a date
        not earlier than ten years from the date of the Agreement for (a) the
        payment of all participation interest due under the Agreement as of the
        accelerated maturity date, or (b) the payment of all participation
        interest due under the Agreement plus all amounts due on the first
        mortgage note on the property.

        In December 1999, the Partnership received a prepayment in the amount of
        $9,746,923 representing the outstanding principal balance due on the La
        Costa PIM. The Borrower defaulted on the first mortgage loan underlying
        the PIM in June of 1999. The Partnership continued to receive its full
        principal and interest payments until the GNMA mortgagee exercised its
        right to prepay the GNMA MBS due to the continuing default of the
        underlying first mortgage loan. Subsequent to the payoff, the
        Partnership received $10,000 from the Borrower to release the
        Subordinated Promissory Note. This payment has been classified as Shared
        Appreciation Interest. On January 11, 2000, the Partnership paid a
        special distribution to the investors of $1.30 per Limited Partner
        interest.

        At December 31, 2001 and 2000 there were no loans within the
        Partnership's portfolio that were delinquent as to principal or
        interest.

        The Partnership's PIMs consist of the following at December 31, 2001
        and 2000:

                                                                         Approximate
                          Original         Interest      Maturity          Monthly              Investment Basis at
PIMs                    Face Amount         Rates (a)     Dates           Payment                   December 31,
----                    ------------       ---------    -----------      -----------      ---------------------------------
                                                                                              2001                 2000
FHA
Vista Montana Apts.
Val Vista Lakes, Az.    $ 13,814,400        7.375%        12/1/33           90,000        $ 13,215,946         $ 13,311,717
                                              (b)
Fannie Mae
Royal Palm Place
                                                                                                 -
Kendall, Fl.               6,021,258        8.375%         4/1/06           39,000           5,563,531            5,563,531
                                                                                         -------------         ------------
                             (c)             (d)
                        ------------
                         $19,835,658                                                     $  18,779,477         $ 18,875,248
                        ============                                                     =============         ============
                                                                                                (e)




                                    Continued



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued


  C.  PIMs, continued

(a)   Represents only the stated interest rate of the Fannie Mae MBS or the
      stated interest rate of the FHA mortgage loan less the servicing fee. In
      addition, the Partnership may receive participation income, consisting of
      (i) Minimum Additional Interest, (ii) Shared Income Interest and (iii)
      Shared Appreciation Interest.

(b)   On November 30, 1993, the Partnership entered into an agreement with the
      underlying borrower of the FHA PIM for a permanent interest rate reduction
      from 8.875% per annum to 7.375% per annum, retroactive to January 1, 1992.
      In exchange for the interest rate reduction, the Partnership received an
      increase in Shared Appreciation Interest from 25% in excess of the base
      amount of $15,410,000 to 25% of the net sales proceeds over the
      outstanding indebtedness at the time of sale. In the event of a
      refinancing, Shared Appreciation Interest is 25% of the appraised value
      over the outstanding indebtedness at the time of refinancing. In addition,
      Shared Income Interest increased from 25% of rental income in excess of
      the base amount of $175,000 to 25% of all distributable surplus cash.

(c)   The total  original  face  amount of the PIM on the  underlying  property
      was $22,000,000  of which 73% or  $15,978,742 was acquired by Krupp
      Insured Plus III Limited Partnership, an affiliate of the Partnership.

(d)   During December 1995, the Partnership agreed to a modification of the
      Royal Palm PIM. The Partnership received a reissued Fannie Mae MBS and
      increased its participation percentage in income and appreciation from 25%
      to 30%. The Partnership will receive interest only payments on the Fannie
      Mae MBS at interest rates ranging from 8.375% to 8.775% per annum through
      maturity.

(e)   The aggregate cost of PIMs for federal income tax purposes is $18,779,477.

A reconciliation of the carrying value of Mortgages for each of the three years
in the period ended December 31, 2001 is as follows:

                                                              2001                 2000                  1999
                                                              ----                 ----                  ----
Balance at beginning of period                            $  18,875,248       $   19,032,999        $ 29,074,105

Deductions during period:

Prepayment and principal collections                            (95,771)            (157,751)          (10,041,106)
                                                          -------------       --------------        ---------------

Balance at end of period                                  $  18,779,477       $   18,875,248        $   19,032,999
                                                          =============       ==============        ==============

      The underlying mortgages of the PIMs are collateralized by multi-family
      apartment complexes located in two states. The apartment complexes range
      in size from 341 to 377 units.

D.    MBS
      ---

      The Partnership received a payoff of the Boulders Apartments MBS on July
      9, 2001 for $9,045,042. The Partnership also received a prepayment premium
      of $306,000 from this payoff. On August 17, 2001, the Partnership paid a
      special distribution of $1.25 per Limited Partner interest from the
      proceeds received.

      The Partnership received a payoff from the Chateau Bijou MBS on September
      19, 2000 for $2,266,064. During October, the Partnership received a 9%
      prepayment premium of $203,946 from this payoff. The Partnership paid a
      special distribution in November of $.33 per Limited Partner interest from
      the proceeds received.






                                    Continued



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued


D.    MBS, continued
      ---

      At December 31, 2001, the Partnership's MBS portfolio had an amortized
      cost of $8,912,032 and gross unrealized gains of $498,888. At December 31,
      2000, the Partnership's MBS portfolio had an amortized cost of $9,458,992
      and gross unrealized gains and losses of $338,073 and $1,482,
      respectively. At December 31, 2000, the Partnership's insured mortgage had
      an amortized cost of $9,068,897 and an unrealized gain of $351,420. The
      portfolio has maturities ranging from 2006 to 2032.

                                                                                                  Unrealized
                          Maturity Date                        Fair Value                             Gain
                          -------------                      -------------                      ---------------
                           2002 - 2006                       $      93,563                      $         7,082
                           2007 - 2011                             317,739                               22,746
                           2012 - 2032                           8,999,618                              469,060
                                                             -------------                      ---------------               ------------------

                             Total                           $   9,410,920                      $       498,888
                                                             =============                      ===============


E.    Partners' Equity

      Profits and losses from Partnership operations and Distributable Cash Flow
      are allocated 97% to the Unitholders and Corporate Limited Partner (the
      "Limited Partners") and 3% to the General Partners.

      Upon the occurrence of a capital transaction, as defined in the
      Partnership Agreement, net cash proceeds will be distributed first, to the
      Limited Partners until they have received a return of their total invested
      capital, second, to the General Partners until they have received a return
      of their total invested capital, third, 99% to the Limited Partners and 1%
      to the General Partners until the Limited Partners receive an amount equal
      to any deficiency in the 10% cumulative return on their invested capital
      that exists through fiscal years prior to the date of the capital
      transaction, fourth, to the class of General Partners until they have
      received an amount equal to 4% of all amounts of cash distributed under
      all capital transactions and fifth, 96% to the Limited Partners and 4% to
      the General Partners.

      Upon the occurrence of a terminating capital transaction, as defined in
      the Partnership Agreement, the net cash proceeds and winding up of the
      affairs of the Partnership will be allocated among the Partners first, to
      each class of Partners in the amount equal to, or if less than, in
      proportion to, the positive balance in the Partner's capital accounts,
      second, to the Limited Partners until they have received a return of their
      total invested capital, third, to the General Partners until they have
      received a return of their total invested capital, fourth, 99% to the
      Limited Partners and 1% to the General Partners until the Limited Partners
      have received to any deficiency in the 11% cumulative return on their
      invested capital that exists through fiscal years prior to the date of the
      capital transaction, fifth, to the General Partners until they have
      received an amount equal to 4% of all amounts of cash distributed under
      all capital transactions and sixth, 96% to the Limited Partners and 4% to
      the General Partners.

      Profits arising from a capital transaction will be allocated in the same
      manner as related cash distributions. Losses from a capital transaction
      will be allocated 97% to the Limited Partners and 3% to the General
      Partners.

      During 2001, 2000 and 1999, the Partnership made quarterly distributions
      totaling $.40, $.76 and $.76 per Limited Partner interest annually,
      respectively. The Partnership made special distributions of $1.25 and
      $1.63 per Limited Partner interest in 2001 and 2000, respectively.







                                    Continued



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued


E.     Partners' Equity, continued

       As of December 31, 2001, the following cumulative partner contributions
       and allocations have been made since inception of the Partnership:

                                                   Corporate                          Accumulated
                                                    Limited             General      Comprehensive
                              Unitholders            Partner           Partners          Income           Total
                             --------------         ---------        -------------   -------------    -------------
Capital                     $  149,489,830         $   2,000         $       3,000   $     -          $ 149,494,830
contributions

Syndication                     (7,906,604)            -                     -             -             (7,906,604)
costs

Quarterly
distributions                 (126,236,046)           (1,727)           (2,927,848)        -           (129,165,621)

Special
distributions                  (72,224,972)             (963)                  -           -            (72,225,935)

Net income  86,510,815               1,163         2,675,629                   -      89,187,607

Unrealized
gains on MBS                        -                  -                       -         498,888            498,888
                            --------------       -----------        -------------  -------------    ---------------

Balance at
December 31, 2001           $   29,633,023       $       473        $    (249,219) $     498,888    $    29,883,165
                            ==============       ===========        =============  =============    ===============




F.     Related Party Transactions

       Under the terms of the Partnership Agreement, the General Partners
       receive an Asset Management Fee equal to .75% per annum of the value of
       the Partnership's total invested assets payable quarterly. The General
       Partners may also receive an incentive management fee in an amount equal
       to .3% per annum on the Partnership's Total Invested Assets providing the
       Unitholders receive a specified non-cumulative annual return on their
       Invested Capital. Total fees payable to the General Partners for asset
       management and incentive management fees shall not exceed 10% of
       distributable cash flow over the life of the Partnership.

       Additionally, the Partnership reimburses affiliates of the General
       Partners for certain expenses incurred in connection with maintaining the
       books and records of the Partnership, the preparation and mailing of
       financial reports, tax information and other communications to investors
       and legal fees and expenses.










                                    Continued




                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued



G.     Federal Income Taxes

       The reconciliation of the net income reported in the accompanying
       statement of income with the net income reported in the Partnership's
       2001 federal income tax return is as follows:

        Net income from statement of operations                                         $   2,540,547

        Add:     Book to tax difference for amortization of
                 prepaid fees and expenses                                                     63,587
                                                                                        --------------

        Net income for federal income tax purposes                                      $   2,604,134
                                                                                        ==============

        The allocation of the 2001 net income for federal income tax purposes is
        as follows:

                                                                                        Portfolio
                                                                                          Income

        Unitholders                                                                     $   2,535,156
        Corporate Limited Partner                                                                  34
        General Partners                                                                       68,944
                                                                                        -------------

                                                                                        $   2,604,134

        For the years ended December 31, 2001, 2000 and 1999 the average per
        unit net income to the Unitholders for federal income tax purposes was
        $.34, $.40 and $.40, respectively.

        The basis of the Partnership's assets for financial reporting purposes
        was less than its tax basis by approximately $256,000 and $343,000 at
        December 31, 2001 and 2000, respectively. The basis of the Partnership's
        liabilities for financial reporting purposes was less than its tax basis
        by approximately $11,000 at December 31, 2001. At December 31, 2000 the
        basis of the Partnership's liabilities for financial reporting purposes
        was the same as its tax basis.

H.      Fair Value Disclosures of Financial Instruments

        The Partnership used the following methods and assumptions to estimate
        the fair value of each class of financial instruments:

        Cash and Cash Equivalents

        The carrying amount approximates fair value because of the short
        maturity of those instruments.

        MBS

        The Partnership estimated the fair value of MBS based on quoted market
        prices while it estimated the fair value of insured mortgages based on
        quoted prices of MBS with similar interest rates. Based on the estimated
        fair value determined using these methods and assumptions, the
        Partnership's investments in MBS had gross unrealized gains of
        approximately $499,000 at December 31, 2001 and gross unrealized gains
        and losses of approximately $689,000 and $1,000 at December 31, 2000.






                                    Continued



                     KRUPP INSURED PLUS LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS, continued



H.      Fair Value Disclosures of Financial Instruments, continued
        -----------------------------------------------


        PIMs

        As there is no active trading market for these investments, management
        estimates the fair value of the PIMs using quoted market prices of MBS
        having a similar interest rate. Management does not include any estimate
        of participation interest in the Partnership's estimated fair value for
        the Vista Montana PIM, as Management does not believe it can predict the
        time of realization of the feature with any certainty. Based on the
        estimated fair value determined using these methods and assumptions, the
        Partnership's investments in PIMs had gross unrealized gains of
        approximately $870,000 at December 31, 2001, and gross unrealized gains
        and losses of approximately $42,000 and $300,000 at December 31, 2000.

        At December 31, 2001 and 2000, the Partnership estimates the fair value
        of its financial instruments as follows (amounts rounded to the nearest
        thousand):



                                                                       2001                             2000
                                                                       -----                            -----

                                                                Fair           Carrying         Fair           Carrying
                                                                Value            Value          Value            Value
                                                            ----------        ----------      ---------        ---------
            Cash and cash equivalents                       $    1,423        $    1,423      $   1,461        $   1,461

            MBS and insured mortgage                             9,411             9,411         19,216           18,864

            PIMs                                                19,649            18,779         18,617           18,875
                                                            ----------        ----------      ---------        ---------

                                                            $   30,483        $   29,613      $  39,294        $  39,200
                                                            ==========        ==========      =========        =========


I.      Subsequent Events

        The Partnership received a prepayment of the Royal Palm Place PIM. On
        January 2, 2002, the Partnership received $378,480 of Shared
        Appreciation Interest and $121,490 of Minimum Additional Interest. On
        February 27, 2002 the Partnership received $5,563,531 representing the
        principal proceeds on the first mortgage. The Partnership has declared a
        special distribution of $.80 per Limited Partner interest consisting of
        Shared Appreciation Interest and prepayment proceeds which will be paid
        in the first quarter of 2002.













                           Unaudited Distributable Cash Flow and Net Cash Proceeds from Capital Transactions

     Shown  below is the  calculation  of  Distributable  Cash Flow and Net Cash
     Proceeds  from  Capital  Transactions,  as  defined  by  Section  17 of the
     Partnership  Agreement,  and the source of cash  distributions for the year
     ended December 31, 2001 and the period from inception  through December 31,
     2001. The General Partners provide certain of the information below to meet
     requirements of the Partnership  Agreement and because they believe that it
     is an appropriate  supplemental measure of operating performance.  However,
     Distributable  Cash Flow and Net Cash  Proceeds  from Capital  Transactions
     should not be  considered by the reader as a substitute to net income as an
     indicator of the Partnership's  operating performance or to cash flows as a
     measure of liquidity.
                                                                                         Year            Inception
                                                                                         Ended            Through
                                                                                        12/31/01           12/31/01

                                                                          (Amounts in thousands, except per Unit amounts)
Distributable Cash Flow:
-----------------------
Income for tax purposes                                                                $   2,605         $   89,932
Items not requiring or (not providing)
 the use of operating funds:
 Amortization of prepaid fees and expenses                                                    28              7,728
 Shared Appreciation Interest and prepayment premiums                                       (306)            (1,022)
 Amortization of MBS premiums                                                                -                  453
 Acquisition expenses paid from offering proceeds
  charged to operations                                                                      -                1,098
 Gain on sale of MBS                                                                         -                 (114)
                                                                                       ---------         ----------
Total Distributable Cash Flow ("DCF")                                                  $   2,327         $   98,075
                                                                                       =========         ==========

Limited Partners Share of DCF                                                          $   2,257         $   95,133
                                                                                       =========         ==========

Limited Partners Share of DCF per Unit                                                 $     .30         $    12.68(c)
                                                                                       =========         ==========

General Partners Share of DCF                                                          $      70         $    2,942
                                                                                       =========         ==========

Net Proceeds from Capital Transactions:
--------------------------------------
Insurance claim proceeds, prepayment  proceeds and PIM
 principal collections including Shared Appreciation
  Interest and prepayment premiums                                                     $      96         $   87,453
Principal collections on MBS including prepayment premiums                                 9,922             58,189
Insurance claim proceeds and principal collections on
 PIMs and MBS reinvested in PIMs and MBS                                                   -                (40,775)
Gain on sale of MBS                                                                        -                    114
                                                                                       ---------         ----------
Total Net Proceeds from Capital Transactions                                           $  10,018         $  104,981
                                                                                       =========         ==========

Cash available for distribution
  (DCF plus Proceeds from Capital Transactions)                                        $  12,345         $  203,056
                                                                                       =========         ==========

Distributions:
-------------
Limited Partners                                                                       $  12,375(a)      $  199,214(b)
                                                                                       =========         ==========

Limited Partners Average per Unit                                                      $    1.65(a)      $    26.56(b)(c)
                                                                                       =========         ==========

General Partners                                                                       $      70(a)      $    2,942(b)
                                                                                       =========         ==========

     Total Distributions                                                               $  12,445         $  202,156
                                                                                       =========         ==========

(a)   Represents all distributions paid in 2001 except the February 2001
        quarterly distribution and includes an estimate of the quarterly
        distribution to be paid in February 2002.
(b)   Includes an estimate of the quarterly distribution to be paid in February
        2002.
(c)   Limited Partners average per Unit return of capital as of February
        2002 is $13.88 [$26.56 - $12.68]. Return of capital represents that
        portion of distributions which is not funded from DCF such as proceeds
        from the sale of assets and substantially all of the principal
        collections received from MBS and PIMs.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

KRUPP INSURED PLUS LTD PARTNERSHIP 10-K
