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What is Landlord Insurance?

Owning rental property can be rewarding and financially profitable, but it’s not without its risks. From potential building damage to possible liability lawsuits, landlords are exposed to multiple risks. Landlord insurance helps shield Massachusetts landlords from many of the risks they face.

Landlord insurance is a specialized form of property insurance. They’re uniquely designed to meet the insurance needs of property owners who lease out residential properties. Most insurers offer policies for single-family homes, mobile homes, townhouses, apartment buildings and other multi-unit housing structures.

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What Massachusetts Property Owners Need Landlord Liability Insurance?

Most individuals, groups and businesses that lease out residential properties in Massachusetts should carry landlord liability insurance. This includes sole proprietors, limited liability corporations and other businesses structures, for the legal protection afforded by various business structures is only one type of protection. Insurance offers additional and different safeguard in the event of an incident.

In certain situations, businesses might even be required by their bank to have a landlord policy in place. Many lenders include such stipulations in their loan agreements so that their financial interest in a leased-out building is protected.

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What Coverages Do Landlord Policies Offer?

Landlord policies often come with multiple coverages in order to shield landlords from a number of the risks they face. Most policies have two main coverages, those being landlord property insurance coverage and landlord liability insurance coverage.

Landlord property insurance coverage normally offers protections for the leased building itself. Depending on a policy’s terms and conditions, it might cover the primary structure itself, secondary structures and certain landlord-owned equipment. Policies typically won’t cover tenants’ belongings, as that’s usually a tenant’s responsibility to insure.

Landlord liability insurance coverage typically offers protection against a range of potential liability lawsuits that tenants or others could file. For example, a tenant might claim they were discriminated against or their friend may say that poor maintenance led to an injury sustained on the property. Depending on a policy's terms and conditions, claims like these might be covered. When they are, liability coverage usually helps pay legal fees and settlements associated with a covered claim.

In addition to these two main coverages, many policies also make coverages that help protect against other risks. Some of these other coverages include:

  • Rent Guarantee Coverage, which may reimburse for rent payments that are never collected
  • Legal Assistance Coverage, which may extend legal fee coverage to non-liability claims
  • Loss of Income Coverage, which may reimburse for lost income following a covered incident

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How Much Do Landlord Policies Cost?

Landlord policies’ premiums vary, for insurance companies consider many factors when setting a policy’s rates. In addition to the coverage and limits selected, the following also might influence how much premiums are:

  • Where a leased-out building is located
  • How a building is constructed
  • How many units a building has
  • What additional structures are covered
  • Whether a landlord has previously filed claims
  • Many other factors

Even once everything is taken into account, however, landlord policies are generally quite affordable. They’re almost certainly more affordable than facing the loss of a building or a major liability lawsuit with no protection in place.

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How Can Landlords in Massachusetts Get Landlord Insurance?

For help finding landlord insurance that will protect you and your buildings, contact the independent insurance agents at Paul T. Murphy Insurance. Our agents have worked with many landlords in Massachusetts, and we have the expertise necessary to help you find a robust and affordable policy. Since we're an independent insurance agency, our team members have the freedom to show you the best available options no matter what insurer offers them.

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