Rental Property Insurance in Massachusetts

What insurance coverages should landlords get?

Depending on the specifics of a property and situation, there are a few coverages that might be important for landlords to consider:

• Dwelling Coverage: Might protect the rental property itself against damage, usually covering the building and other structures.
• Landlord Contents Coverage: This might protect items a landlord stores at the rental property, possibly covering appliances, snowblowers, lawnmowers, and furniture if renting furnished places.
• Loss of Income Coverage: Might protect against unreceived rents, if a disaster renders the property uninhabitable and tenants move out.
• Rent Guarantee Coverage: Might protect against unreceived rents, if tenants are unable or unwilling to pay their rent for an extended period.
• General Liability Coverage: Might protect against common accidents, in which tenants, visitors, or others are injured on the property.
• Legal Assistance Coverage: Might protect against costs related to legal actions such as securing evictions or judgments (not liability lawsuits).

An insurance agent specializing in rental property policies can review all available coverage options.

When does rent guarantee coverage make sense?

Rent guarantee coverage is generally recommended for landlords who rely on the cash flow that rental payments provide. 

Landlords ought to consider this coverage if they need a tenant’s rent to cover monthly mortgage payments. In fact, many rental property loans require that this coverage be in place. Landlords should also strongly consider this coverage if they need the rental income to cover routine personal expenses.

Landlords might forgo rent guarantee coverage if they don’t need rental income for immediate expenses. If short-term expenses could still be covered when tenants don’t pay, then it may be possible to forgo this coverage.

An insurance agent who understands rental properties well can help think through this decision.

Can rental property policies cover mixed-use properties?

Rental property policies are normally designed for smaller residential properties and not properties that have residential and commercial spaces. Mixed-use properties are typically insured via a slightly different type of insurance policy.

Can a single rental property policy cover multiple properties?

Yes, multiple rental property insurance policies are able to cover multiple properties. Landlords who have several similar rental properties will likely have no issue finding a multiple rental property insurance policy, especially if working with an experienced insurance agent.

How much does it cost to insure a rental property?

The cost of insuring a rental property depends on many factors and thus varies depending on the situation. Insurance companies often look at the property’s size, construction, location, and many other factors. A landlord’s experience and insurance claims history can also have an effect on premiums.

To see how much a specific property will cost to insure, landlords can work with an independent insurance agent. Independent agents aren’t affiliated with one particular insurance company but can check quotes from several companies. They’ll be able to request quotes for insuring a single policy or for a multiple rental property insurance policy.