Do you rent property in Massachusetts? If you do, you will want to protect yourself with the proper insurance coverage. As a landlord, you have a lot of responsibility. While your renter should have Renters Insurance, you should cover your end with Dwelling Fire Insurance also known as Rental Property Insurance. This coverage will be key to making sure that you are covered for everything from structural damage to liability damage.
You may not be living on the property, but you are the property owner and it is important that you are covered should anything happen to the property. If you have a mortgage on your property, you will be required to have a Landlord’s Insurance Policy. If you do not have a mortgage, it is still a great idea and could end up saving you money, time, and a headache should certain unforeseen accidents take place.
A basic Landlord’s Insurance policy can offer you coverage for the following:
- Attached structures
- Detached structures
- Rental income lost in the event of a disaster that leaves your tenants without a home
- The dwelling
- Liability coverage for legal fees due to injury claims and medical expenses if a tenant or their guest is hurt on property
- Personal property left on-site for maintenance or tenants use (ex. Appliances, lawnmowers, furniture)
Our agents understand that every Massachusetts Rental Property Insurance policy is unique. Your property could be rented out to a business, tenant, or may currently be vacant. No matter who or what is in the property, the right coverage is key. This means the right amount of liability coverage, personal property coverage, and more.
Some of the coverage in the list above and others could use more explanation. Two of the most important, but sometimes confusing items on the list are loss of rental income and landlord liability.
As a landlord, you may be counting on rental tenants as your primary or supplemental income. If something were to happen to the home to make it inhabitable wouldn’t it be nice to have coverage for that? In the event that something like a fire took place and your tenants couldn’t live there, having loss of rental income coverage could help you. Your property damage will be covered under your property damage coverage and as long as you were making repairs, you would have loss of income coverage. This allows for you to get the building repairs done while not having to lose any income. Keep in mind flood and earthquake damage isn’t included on a basic landlord’s policy so damage caused by those would not be covered. If either of these are of concern to you, talk to an agent about adding them to your policy.
Another coverage you will want to have as a landlord is landlord liability coverage. This coverage can help protect you against tenants or guests being hurt on your property. If an accident took place on your property, you could be sued for lost wages, medical bills, and more. Having landlord liability coverage can help you cover that. In addition, you will have to fix the issue on your property that caused the accident, if applicable. If you were to be sued, keep in mind that the cost of legal fees can really add up. Accidents happen and having liability coverage for landlords can help protect you from situations that can potentially add up costs that go beyond your means.
New to Massachusetts? Here are some fun facts that even a lifelong resident may not have known:
- In 2009, the median price of a single-family home rose above $300,000. Could this mean more prospective renters for landlords?
- Landlords can write-off things such as cleaning, general maintenance and advertising and Realtor fees on their taxes.
- And just for fun: we have a state polka and it is called “Say Hello to Someone from Massachusetts”.
Especially if you are a first time landlord, the list of things to do can sometimes fill up very fast. The list may be long, but make sure that getting a landlord’s insurance policy is one of the top priorities on that list. Having a comprehensive coverage plan as a landlord can help protect you and your tenant in the event of accidents and unforeseen incidents. Make sure when you are speaking with an agent, you fill all of the coverage gaps between what a renters insurance may cover and what you need to cover on your end. An Encharter Insurance agent can help you do that. They might suggest an umbrella policy to make sure you have enough coverage for instances when your liability exceeds your limits. Our agents will make sure you have the right coverage you need.
No matter what kind of property you are renting out or who will be occupying the space, your landlord insurance coverage is important. You will also need to have the same things on hand to get started with a policy. To help speed up the quoting process, have the following information on hand when you speak with an agent:
- Mortgage name and address
- Details of any homeowner’s losses from the past 6 years
- Year the home was built
- Updates to the home’s heating, plumbing or electrical systems and to the roof
Also, be sure to ask our agents about discounts you may be eligible for. You could save money by switching to paperless, or even just by bundling another policy, such as your auto insurance policy with your rental property insurance.
If you want to get started with a Massachusetts rental property insurance quote, give our agents a call today at 888.754.8299! If you would rather get started online, fill out the form above.
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