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


                                                     FORM 10-Q

(Mark One)


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

For the quarterly period ended           September 30, 1999

                                                        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          0-17690


                            Krupp Insured Mortgage Limited Partnership


       Massachusetts                                   04-3021395
(State or other jurisdiction                (IRS employer identification no.)
of incorporation or organization)


One Beacon Street, Boston, Massachusetts                  02108
(Address of principal executive offices)                (Zip Code)


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



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



                          PART I.  FINANCIAL INFORMATION



Item 1.  FINANCIAL STATEMENTS

     This Form 10-Q 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.


                      KRUPP INSURED MORTGAGE LIMITED PARTNERSHIP

                                    BALANCE SHEETS



                                        ASSETS

                                                                         September 30,           December 31,
                                                                               1999                   1998

Participating Insured Mortgages ("PIMs")
                                                                                        
 (Note 2)                                                              $    82,887,489        $    98,950,663
Mortgage-Backed Securities ("MBS") (Note 3)                                 15,800,538             18,806,870

   Total mortgage investments                                               98,688,027            117,757,533

Cash and cash equivalents                                                    4,626,305             15,117,466
Interest receivable and other assets                                           663,924                786,165
Prepaid acquisition fees and expenses, net of
 accumulated amortization of $ 6,670,991 and
 $ 7,184,808, respectively                                                     469,542              1,167,020
Prepaid participation servicing fees, net of
 accumulated amortization of $ 1,989,708 and
 $ 2,170,982, respectively                                                     165,857                385,110

   Total assets                                                        $   104,613,655        $   135,213,294

                                          LIABILITIES AND PARTNERS' EQUITY

Liabilities                                                            $        13,500        $        30,794

Partners' equity (deficit):
  Limited Partners                                                         104,876,238            134,849,373
   (14,956,856  Limited Partner interests
    outstanding)
  General Partners                                                            (350,694)              (312,060)
  Accumulated comprehensive income                                              74,611                645,187

  Total Partners' equity                                                   104,600,155            135,182,500

   Total liabilities and Partners' equity                              $   104,613,655        $   135,213,294




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






                                 KRUPP INSURED MORTGAGE LIMITED PARTNERSHIP
                                STATEMENTS OF INCOME AND COMPREHENSIVE INCOME



                                                For the Three Months                 For the Nine Months
                                                 Ended September 30,                  Ended September 30,
                                                   1999              1998          1999               1998
Revenues:
   Interest income - PIMs:
                                                                                     
      Basic interest                      $   1,600,872     $   2,132,668     $  4,989,116       $  6,480,102
      Participation interest                     51,227           429,504          996,529            499,260
   Interest income - MBS                        300,315           386,113          961,565          1,234,001
   Other interest income                         62,712            66,988          378,488            247,670

            Total revenues                    2,015,126         3,015,273        7,325,698          8,461,033

Expenses:
   Asset management fee to
    an affiliate                                157,041           222,825          528,046            662,314
   Expense reimbursements to
    affiliates                                   29,238            24,810           63,408             33,581
   Amortization of prepaid
      fees and expenses                         242,892           406,173          916,731          1,038,460
   General and administrative
      expenses                                   70,656            37,465          173,729            180,021

            Total expenses                      499,827           691,273        1,681,914          1,914,376

Net income                                    1,515,299         2,324,000        5,643,784          6,546,657

Other comprehensive income:
      Net change in unrealized gain
         on MBS                                (155,590)          232,671         (570,576)           133,764

Total comprehensive income                $   1,359,709     $   2,556,671     $  5,073,208       $  6,680,421

Allocation of net income
      (Note 4):

   Limited Partners                       $   1,469,840     $   2,254,280     $  5,474,470       $  6,350,257

   Average net income per
      Limited Partner interest
      (14,956,856 Limited
       Partner interests
       outstanding)                       $         .10     $         .15     $        .37       $        .42

   General Partners                       $      45,459     $      69,720     $    169,314       $    196,400




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





                                     KRUPP INSURED MORTGAGE LIMITED PARTNERSHIP

                                              STATEMENTS OF CASH FLOWS





                                                                                    For the Nine Months
                                                                                    Ended September 30,
                                                                                 1999                  1998
Operating activities:
                                                                                           
   Net income                                                              $   5,643,784         $   6,546,657
   Adjustments to reconcile net income to net
    cash provided by operating activities:
      Amortization of prepaid fees and expenses                                  916,731             1,038,460
      Shared appreciation income and prepayment premium                         (703,860)             (268,638)
      Changes in assets and liabilities:
         Decrease in interest receivable and
          other assets                                                           122,241                68,212
         Decrease in liabilities                                                 (17,294)              (97,433)

            Net cash provided by operating activities                          5,961,602             7,287,258

Investing activities:
   Principal collections on PIMs including shared
    appreciation and prepayment premium income of $703,860 in 1999
     and $268,638 in 1998.                                                    16,767,034             4,695,644
   Principal collections on MBS                                                2,435,756             3,571,624

            Net cash provided by investing activities                         19,202,790             8,267,268

Financing activities:
   Quarterly distributions                                                    (9,630,729)          (11,005,126)
   Special distributions                                                     (26,024,824)          (20,789,946)

            Net cash used for financing activities                           (35,655,553)          (31,795,072)

Net decrease in cash and cash equivalents                                    (10,491,161)          (16,240,546)

Cash and cash equivalents, beginning of period                                15,117,466            20,480,666

Cash and cash equivalents, end of period                                   $   4,626,305         $   4,240,120




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



                                     KRUPP INSURED MORTGAGE LIMITED PARTNERSHIP

                                            NOTES TO FINANCIAL STATEMENTS


1.     Accounting Policies

     Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted in this report on Form 10-Q pursuant to the Rules
and  Regulations  of the  Securities and Exchange  Commission.  However,  in the
opinion of the General  Partners,  Krupp Plus Corporation and Mortgage  Services
Partners Limited  Partnership,  (collectively  the "General  Partners") of Krupp
Insured  Mortgage  Limited  Partnership  (the  "Partnership"),  the  disclosures
contained  in this report are  adequate to make the  information  presented  not
misleading. See Notes to Financial Statements included in the Partnership's Form
10-K for the year ended December 31, 1998 for additional information relevant to
significant accounting policies followed by the Partnership.

     In  the  opinion  of  the  General  Partners,  the  accompanying  unaudited
financial  statements  reflect all adjustments  (consisting  primarily of normal
recurring  accruals)  necessary to present  fairly the  Partnership's  financial
position as of September 30, 1999,  its results of operations  for the three and
nine months  ended  September  30, 1999 and 1998 and its cash flows for the nine
months ended September 30, 1999 and 1998.

     The results of operations for the three and nine months ended September 30,
1999 are not necessarily indicative of the results which may be expected for the
full year. See Management's  Discussion and Analysis of Financial  Condition and
Results of Operations included in this report.

2.     PIMs

     During March 1999, the  Partnership  received a payoff of the Remington PIM
in the  amount of  $12,199,298.  The  payoff  was the result of a default on the
underlying  loan  which  resulted  in  the  Partnership  receiving  all  of  the
outstanding  principal  balance under the insurance feature of the PIM. However,
due to the default the Partnership did not receive any participation income from
this PIM.

     During  February  1999,  the  Partnership  received  a  payoff  of the Pope
Building PIM in the amount of $3,176,761.  In addition, the Partnership received
$703,860 of Shared  Appreciation  and prepayment  premium income and $218,578 of
Shared Income and Minimum Additional  Interest upon the payoff of the underlying
mortgage.

     During May 1999, the Partnership  paid a special  distribution of $1.08 per
Limited Partner interest from the principal  proceeds,  Shared  Appreciation and
prepayment proceeds received from the Remington and Pope Building PIMs.

     During January 1999, the  Partnership  paid a special  distribution of $.66
per Limited Partner interest from the principal  proceeds and prepayment premium
received from the Cross Creek PIM during 1998.

     At September 30, 1999, the  Partnership's PIM portfolio had a fair value of
$83,576,850 and gross unrealized gains of $689,361.  The Partnership's PIMs have
maturities  ranging from 2000 to 2032. At September  30, 1999 the  Partnership's
participating insured mortgage loan was not delinquent of principal or interest.



3.     MBS

     As of September 30, 1999, the  Partnership's MBS portfolio had an amortized
cost of  $15,725,927  and gross  unrealized  gains and losses of  $198,304,  and
$123,693,  respectively.  The MBS portfolio has maturity dates ranging from 1999
to 2024.





                           KRUPP INSURED MORTGAGE LIMITED PARTNERSHIP

                            NOTES TO FINANCIAL STATEMENTS, continued



4.     Changes in Partners' Equity

       A summary of changes in Partners' Equity for the nine months ended
       September 30, 1999 is as follows:


                                                                                     Accumulated            Total
                                                Limited             General         Comprehensive         Partner's
                                                Partners            Partners           Income               Equity


                                                                                       
Balance at December 31, 1998             $   134,849,373       $    (312,060)    $      645,187    $     135,182,500

Net income                                     5,474,470             169,314               -               5,643,784

Quarterly distributions                       (9,422,781)           (207,948)              -              (9,630,729)

Special distributions                        (26,024,824)              -                   -             (26,024,824)

Decrease in unrealized gain
 on MBS                                            -                   -               (570,576)            (570,576)

Balance at September 30, 1999            $   104,876,238       $    (350,694)    $       74,611    $     104,600,155




5.     Subsequent Event

       Valley Manor Apartments PIM

     The Partnership  received a repayment of the Valley Manor PIM in October of
$4,425,993.  The Partnership will not receive any additional  interest from this
prepayment because the underlying  property's appraised value did not exceed the
threshold  required to realize  additional  interest.  The Partnership  plans on
making a fourth quarter distribution of $.30 per Limited Partner Interest.






Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

     Management's  Discussion and Analysis of Financial Condition and Results of
Operations  contains  forward-looking   statements  including  those  concerning
Management's  expectations regarding the future financial performance and future
events.   These   forward-looking   statements  involve   significant  risk  and
uncertainties,  including  those  described  herein.  Actual  results may differ
materially from those anticipated by such forward-looking statements.

Impact of the Year 2000 Issue

     The General Partners have conducted an assessment of the Partnership's core
internal and external computer  information systems and have taken the necessary
steps to further  understand  the nature and extent of the work required to make
its systems  Year 2000 ready in those  situations  in which it is required to do
so.  The Year 2000  readiness  issue  concerns  the  inability  of  computerized
information  systems to  accurately  calculate,  store or use a date after 1999.
This could result in a system failure or miscalculations  causing disruptions of
operations.  The  Year  2000  issue  affects  virtually  all  companies  and all
organizations.

     In this regard, the General Partners, along with certain affiliates,  began
a  computer  systems  project  in 1997 to  significantly  upgrade  its  existing
hardware and software. The General Partners completed the testing and conversion
of the financial accounting operating systems in February 1998. As a result, the
General  Partners  have  generated  operating  efficiencies  and  believe  their
financial accounting operating systems are Year 2000 ready. The General Partners
incurred  hardware costs as well as consulting and other expenses related to the
infrastructure and facilities enhancements necessary to complete the upgrade and
prepare for the Year 2000.  There are no other  significant  internal systems or
software that the Partnership is using at the present time.

     The  General  Partners  surveyed  the  Partnership's  material  third-party
service providers (including but not limited to its banks and telecommunications
providers) and  significant  vendors and received  assurances  that such service
providers and vendors are Year 2000 ready.  The Partnership  does not anticipate
any problems that would materially  impact its results of operations,  liquidity
or  capital   resources.   Nevertheless  the  General  Partners  are  developing
contingency  plans  for all of  their "mission-critical  functions"  to  insure
business continuity.

     The  Partnership  is also subject to external  forces that might  generally
affect industry and commerce,  such as utility and  transportation  company Year
2000 readiness failures and related service interruptions.  However, the General
Partners do not anticipate any material impact on the  Partnership's  results of
operations, liquidity or capital resources.

     To date, the  Partnership  has incurred  $13,778 of costs  associated  with
being Year 2000 ready.  The Partnership  does not expect to incur any additional
Year 2000 readiness costs.

Liquidity and Capital Resources

     The most  significant  demand on the  Partnership's  liquidity  are regular
quarterly  distributions paid to investors of approximately $3.14 million. Funds
used for investor  distributions  are generated from interest income received on
the PIMs,  MBS, cash and short-term  investments  and the principal  collections
received on the PIMs and MBS. The  Partnership  funds a portion of the quarterly
distribution  from principal  collections  causing the capital  resources of the
Partnership to  continually  decrease.  As a result of this decrease,  the total
cash  inflows  to the  Partnership  will also  decrease,  which  will  result in
periodic adjustments to the distributions paid to investors.

     During January 1999, the  Partnership  paid a special  distribution of $.66
per Limited Partner Interest from the principal  proceeds and prepayment premium
received from the Cross Creek PIM during 1998.

     During March 1999, the  Partnership  received a payoff of the Remington PIM
in the  amount of  $12,199,298.  The  payoff  was the result of a default on the
underlying  loan  which  resulted  in  the  Partnership  receiving  all  of  the
outstanding  principal  balance under the insurance feature of the PIM. However,
due to the default the Partnership did not receive any participation income from
this PIM.

     During  February  1999,  the  Partnership  received  a  payoff  of the Pope
Building PIM in the amount of $3,176,761.  In addition, the Partnership received
$703,860 of Shared  Appreciation  and prepayment  premium income and $218,578 of
Shared Income and Minimum Additional  Interest upon the payoff of the underlying
mortgage.

     During May 1999 the  Partnership  paid a special  distribution of $1.08 per
Limited Partner Interest from the principal  proceeds,  Shared  Appreciation and
prepayment premium received from Remington and the Pope Building.

     In October  1999 the  Partnership  received a repayment of the Valley Manor
Apartments PIM of $4,425,993.  The  Partnership  will not receive any Additional
Interest  as a result  of this  prepayment  because  the  underlying  property's
appraised  value did not exceed the  threshold  required  to realize  additional
interest.  The Partnership plans on making a fourth quarter distribution of $.30
per Limited Partner Interest.

     The  General  Partners  estimate  that the  Partnership  can  maintain  the
quarterly  distribution  rate of  $.21  per  Limited  Partner  Interest  through
February 2000.  However, in the event of further PIM prepayments the Partnership
would be required to  distribute  proceeds  from such  prepayments  as a special
distribution  which may cause an adjustment to the distribution  rate to reflect
the anticipated future cash inflows from the remaining mortgage investments.



     The  participation  features of the PIMs are neither insured nor guaranteed
and if repayment of a PIM results from an insurance  claim, the Partnership will
not receive any participation  interest.  The Partnership has the option to call
certain PIMs by accelerating  their maturity if the loans are not prepaid by the
tenth year after permanent funding. The Partnership will determine the merits of
exercising  the call option for each PIM 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.

Assessment of Credit Risk

     The  Partnership's  investments  in mortgages are  guaranteed or insured by
Fannie Mae, the Government National Mortgage Association  ("GNMA"),  the Federal
Home Loan Mortgage Corporation ("FHLMC") and the Department of Housing and Urban
Development ("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 represent  interests 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.

Results of Operations

     The  following  discussion  relates to the  operations  of the  Partnership
during the three and nine months ended September 30, 1999 and 1998.

     Net income decreased by  approximately  $809,000 for the three months ended
September 30, 1999 as compared to the corresponding period in 1998 due primarily
to prepayments of mortgage investments and a decrease in participation interest.
Basic  interest on PIMs decreased  $532,000  during the third quarter of 1999 as
compared to the third  quarter of 1998 as a result of the  payoffs of  Remington
and Pope  Building  PIMs during the first  quarter of 1999 and the Deering Place
PIM  and  the  Cross  Creek  PIM in the  third  and  fourth  quarters  of  1998,
respectively.  Participation interest was higher in the third quarter of 1998 as
compared to 1999 due to the receipt of $359,000 in Shared Appeciation income and
Minimum  Additional  interest from the Deering Place PIM payoff during the third
quarter of 1998.  MBS interest  income  decreased by $86,000 in 1999 versus 1998
due  to  the  on-going  prepayment  of  the  Partnership's   single-family  MBS.
Amortization of prepaid fees and expenses  decreased $163,000 as the Partnership
had fully  amortized the prepaid fees and expenses  related to the Remington and
Pope Building PIMs in the first quarter of 1999, and the Deering Place and Cross
Creek  PIMs in the  third  and  fourth  quarters  of 1998,  respectively.  Asset
management  fees to an affiliate  decreased  $66,000 in 1999 due to  prepayments
reducing the Partnership's mortgage investments.

     Net income  decreased by  approximately  $903,000 for the nine months ended
September  30,  1999 as  compared  to the  corresponding  period in 1998.  Basic
interest on PIMs decreased  $1,491,000 for the nine months ended  September 1999
versus  the same  period in 1998 due to the  payoffs of the  Remington  and Pope
Building  PIMs in 1999 and the payoffs of the Deering Place and Cross Creek PIMs
in the third quarter of 1998. MBS interest income decreased  $272,000 due to the
on-going  prepayment  of the  Partnership's  single-family  MBS. The increase in
participation  interest on PIMs of $497,000 was due  primarily to the receipt of
$922,000 of  participation  interest  from the Pope  Building  payoff during the
first  quarter of 1999 as  compared  to the  $359,000  received in 1998 from the
Deering Place PIM payoff.  Also, asset management fees decreased $134,000 during
1999 as  compared  to 1998  due to the  prepayments  and  principal  collections
reducing the Partnership's mortgage investments.  Amortization expense decreased
by $122,000  as a result of fully  amortizing  the  remaining  prepaid  fees and
expenses  of  the  Deering   Place  and  Cross  Creek  PIMs  and  the  Patrician
multi-family MBS in 1998.

     Interest  income on PIMs and MBS will  continue  to  decline  as  principal
collections  reduce the outstanding  balance of the portfolios.  The Partnership
funds a portion of distributions with MBS and PIM principal  collections,  which
reduces  the  invested  assets  generating  income for the  Partnership.  As the
invested assets decline, interest income to the Partnership will decline.




                               KRUPP INSURED MORTGAGE LIMITED PARTNERSHIP

                                       PART II - OTHER INFORMATION


Item 1.       Legal Proceedings
              Response:  None

Item 2.       Changes in Securities
              Response:  None

Item 3.       Defaults upon Senior Securities
              Response:  None

Item 4.       Submission of Matters to a Vote of Security Holders
              Response:  None

Item 5.       Other Information
              Response:  None

Item 6.       Exhibits and Reports on Form 8-K
              Response:  None




                                        SIGNATURE


Pursuant  to the  requirements  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.





                    Krupp Insured Mortgage Limited Partnership
                                    (Registrant)




                    BY:    / s / Robert A. Barrows
                           Robert A. Barrows
                           Treasurer and Chief Accounting Officer of
                           Krupp Plus Corporation, a General Partner




DATE: October 29, 1999