What is Rental Property Insurance?
Leasing real estate properties requires a significant investment of capital, and it also comes with major potential risks. Everything from a fire to a common slip-and-fall could result in devastating losses. Rental property insurance can help Massachusetts landlords protect themselves from the financial fallout of risks like these.
Rental property insurance is specialized homeowners insurance that’s adapted to meet landlords’ coverage needs. While some of the insurance’s coverages are similar to those of standard homeowners policies, there are also points where the two insurances significantly differ.
Who in Massachusetts Should Have a Rental Property Policy?
Most Massachusetts landlords ought to carry a rental property policy, for this is generally the best way to insure both leased investment properties and landlord businesses. Substantial losses could occur if adequate coverage isn’t in place.
Additionally, insurance often isn’t optional for landlords who have loans remaining on their properties. Lenders usually require property owners to insure properties for at least the balance of a loan, in order to protect the lender’s interest in the property. Of course, it can be wise to purchase more insurance than is required so that the landlord’s interest is protected too.