Rental Property Insurance in Massachusetts

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.

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What Coverages Are Available Through Rental Property Policies?

The coverages in rental property policies typically protect the property itself, the landlord against liability lawsuits and the landlord against certain revenue losses. Some of the coverages to consider are:

  • Rental Property Coverage, which might cover an investment property in the event of damage or loss
  • Landlord Contents Coverage, which might cover appliances, furniture and other owned items on a property
  • Liability Coverage, which might cover lawsuits resulting from accidents that occur on a property
  • Rent Guarantee Coverage, which might cover monthly payments if tenants fail to meet their rent obligations
  • Loss of Income Coverage, which might cover revenue losses if a property is unusable due to a covers incident
  • Legal Assistance Coverage, which might cover legal fees that don’t arise from liability lawsuits

Lenders that require coverage may require one or more of these coverages to be in place.

What Are the Premiums for Rental Property Policies?

Rates for rental property policies vary, and policies that provide multiple rental property insurance are likely to be more than those that insure just one property. Some of the factors that can impact premiums are:

  • How a building’s area is zoned (e.g. residential, commercial, mixed-use)
  • How close or far a building is from the nearest fire station
  • How large a building is, and how many units are in it

An independent insurance agent can help landlords explore policy options from multiple insurance companies, so they can get the best coverage and rate.

Can Landlords With Several Investment Properties Get a Break on Insurance?

Landlords who have several (or many) investment properties should look into multiple rental property insurance. The insurance is specifically designed for situations where landlords have two or more properties, and those properties often can be adjacent or not adjacent to each other. This tends to be the most affordable way to fully insure more than one property.

An insurance agent who specializes in rental property policies will be able to assist with multiple rental property insurance. They'll be familiar with both single-property and multiple-property policies.

Are Tenants Covered by a Rental Property Policy?

Rental property policies generally don’t cover tenants or belongings. Tenants are recommended to review their own insurance needs and purchase renters insurance, and some landlords require tenants to carry a renters policy.

How Can Property Owners in Massachusetts Get Rental Property Insurance?

For assistance insuring one or more investment properties in Massachusetts, speak with the independent insurance agents at Roger Butler Insurance. Our agents will help you evaluate coverage needs, and we’ll make sure you get a rental property insurance policy that meets those needs well.

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