Rental Property Insurance in Massachusetts
What is rental property insurance?
The investments made in rental properties should be protected whenever possible, for few landlords could recover from a major disaster on their own. To help protect residential investment properties in Massachusetts, there’s rental property insurance.
Rental property insurance offers landlords customizable coverage for their investment properties. Policies may protect both landlords’ properties and landlords themselves.
Who in Massachusetts are rental property policies for?
Landlords in Massachusetts generally should have a rental property policy covering their properties. This broadly includes most investment firms, LLCs and individual landlords with properties.
When properties are financed rather than owned outright, certain coverages probably aren’t optional. Lenders frequently stipulate in their loan agreements that landlords maintain at least enough coverage to reimburse the lender if a property is destroyed. Much more coverage is usually recommended.
What insurance coverages should landlords with residential properties look for?
Rental properties may require several different coverages. Some important ones to look for in a rental property policy might include:
- Dwelling Coverage: Usually covers the main buildings on a property, and other structures present. May protect against a variety of perils depending on specific terms.
- Landlord Contents Coverage: Usually covers appliances, landscaping equipment and other items owned by the landlord that are kept on the property. May protect against both loss and damage.
- Loss of Income Coverage: Usually covers the loss of rental income in situations where a disaster renders the property uninhabitable. May cover income losses for the duration of repairing or rebuilding, up to a maximum limit.
- Rent Guarantee Coverage: Usually covers the landlord against loss of rental income when tenants neglect or are unable to pay their rent. May cover non-payment over an extended period.
- General Liability Coverage: Usually covers the landlord against certain legal claims, typically those alleging that the landlord is responsible for injury or property damage due to negligence.
- Legal Assistance Coverage: Usually covers the costs of legal actions not related to liability suits, such as attorney fees incurred when pursuing a judgment.
Do landlords need to include rent guarantee coverage in their policy?
The need for rent guarantee coverage depends largely upon the landlord’s need for consistent rental income.
For landlords who rely on regular rental income to pay bills, whether loans, business expenses or personal bills, rent guarantee probably should be purchased. In fact, sometimes lenders require this coverage so they can trust they’ll be paid.
Landlords who are investing in residential real estate as a side hustle or long-term savings method might choose to forgo this one protection. In these situations, landlords might be able to survive short-term periods where rent isn’t received.
For help evaluating whether rent guarantee coverage should be purchased, landlords can consult an insurance agent who’s familiar with rental property policies.
Can multiple rental properties be covered by one insurance policy?
Multiple rental property insurance is designed for insuring more than one residential investment property. These policies can usually cover almost any number of rental properties within the state, and the policies are readily available.
Can mixed-use properties be covered by multiple rental property insurance?
Multiple rental property insurance mainly insures residential holdings. For mixed-use properties that integrate residential and commercial spaces, a broader insurance plan may be needed. They likely need both the coverages included in multiple rental property policies, and other coverages.
An insurance agent who knows multiple rental property insurance should be able to assist with finding a policy suitable for mixed-use investment properties, in addition to helping insure properties that are only residential.
How can landlords in Massachusetts get rental property insurance?
If you need help getting insurance for rental properties located in Massachusetts, contact the independent insurance agents at PIKE Insurance. Our agents will work closely with you to find robust rental property insurance for your properties.
