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What Is Rental Property Insurance?

Landlords who rent out properties in Massachusetts have made sizeable investments in their buildings, and those investments ought to be protected. Rental property insurance policies help landlords protect both themselves and their buildings from many potential perils.

Rental property insurance is a form of property insurance that’s specifically designed to meet the risk mitigation needs of landlords. While policies are similar to other types of property insurance policies in certain areas, there are also substantial differences between rental property and other policies.

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Who in Massachusetts Should Have a Rental Property Policy?

Most people and organizations that own investment properties in Massachusetts should consider purchasing a rental property policy. This includes owners of single-family homes, townhouses, duplexes, apartment buildings and commercial structures that are rented out.

Some landlords might be required by the terms of a building loan to carry a certain amount of insurance. Many lenders include such a stipulation in the terms of their loan so that their financial interest in a building is protected. Even when such a stipulation is in place, however, it’s often wise to purchase more than the minimum required coverage.

Rental Property Insurance Massachusetts

What Coverages Are Available Through Rental Property Policies?

Most rental property policies make multiple coverages available in order to protect against a range of possible risks that landlords face. Two main protections that many policies offer are property coverage and liability coverage.

Rental property coverage usually insures a building against certain causes of damage or loss. For instance, a policy might offer protection against fire, wind, vandalism, theft or similar perils. Often, these protections can be expanded to include secondary structures and landscaping on a property.

Liability coverage normally insures landlords against certain lawsuits that they could be named in. The protection is typically limited to lawsuits that are directly related to a rental property or rental agreement, but many situations involving renters and their guests may be covered.

In addition to these main protections, rental property policies frequently also offer a variety of additional protections. Some other coverages that landlords might want are:

  • Landlord Contents Coverage, which may cover owned equipment kept in a rental unit
  • Rent Guarantee Coverage, which may cover payments that tenants fail to make
  • Loss of Income Coverage, which may cover lost revenue following a disaster
  • Legal assistance Coverage, which may cover legal fees not associated with liability suits

To get help selecting the coverages that make sense for their property and situation, landlords should speak with an insurance agent who specializes in this form of insurance. A specialized agent will be familiar with the many protections that are available, and they’ll know when each of the protections is most useful.

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Are Tenants Covered by Rental Property Policies?

Rental property policies normally only cover landlords and the rental buildings they own. Coverage usually isn’t extended to tenants or their belongings.

Tenants who would like their own insurance can look into renters insurance. This is a highly affordable form of coverage that may offer liability coverage for tenants and personal property coverage for the possessions they own.

Are Rental Property Policies Expensive?

Rental property policies vary in price, but they’re generally affordable. They’re almost certainly more affordable than having to recover from a major disaster or lawsuit without any insurance protection in place.

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How Can Landlords in Massachusetts Get Rental Property Insurance?

For help insuring a Massachusetts rental property that you own, contact the independent insurance agents at Paul T. Murphy Insurance. Our agents have the expertise necessary to help you find a robust rental property insurance policy, and they can recommend the best available ones regardless of what insurer offers them since we’re an independent agency.

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