What is rental property insurance?

Investing in residential properties can build wealth over time, but it comes with risks of loss, theft and damage. Rental property insurance may help investors who have properties in Massachusetts protect their investments against risks like these.

Rental property insurance is specialized commercial insurance for residential property investors. While there are points of similarity with homeowners policies, there also are notable differences.

Who in Massachusetts should carry a rental property policy?

Landlords who own properties in Massachusetts should consider a rental property policy. Both single and multiple rental property insurance policies are available. This recommendation encompasses both individual landlords and businesses that have residential real estate holdings.

For landlords that have leverage their investments through financing, a minimum amount of property coverage is normally compulsory. Even when there is no lender-stipulated coverage requirement, protecting large assets with insurance is generally wise.

What coverages can landlords obtain through rental property policies?

Rental property policies usually provide coverage for the physical assets that a policyholder has invested in, and liability protections is often also made available. Specific coverages can include protections such as the following:

• Rental Liability Coverage, which may cover landlords in the event of an accident
• Commercial Property Coverage, which may cover residential and secondary buildings
• Commercial Contents Coverage, which may cover equipment inside a building
• Rental Guarantee Coverage, which may cover lost revenue when tenants don’t pay
• Loss of Income Coverage, which may cover lost revenue caused by a disaster
• Legal Assistance Coverage, which may cover non-liability legal expenses 

In some cases, landlords also need commercial auto coverage for commercially registered vehicles. Auto coverage is most often needed when purchasing multiple rental property insurance, as investors with multiple properties are more likely to have commercial vehicles that employees use when driving between locations.

An insurance agent who specializes in individual and multiple rental property insurance policies can help landlords find a policy that provides the coverages they need.

Do rental property policies give tenants any protections?

Rental property policies generally only cover landlords, and not tenants. Tenants normally are encouraged to purchase renters insurance policies, which are different from rental property policies.

How are rental property policies different from homeowners insurance policies?

Both renters property and homeowners insurance usually insure buildings against damage and loss, but they differ in other coverages. 

Homeowners policies often come with broader personal liability coverage, while renters property policies tend to only cover liability lawsuits associated with the insured property. Homeowners policies don’t normally make coverage for lost revenue available.

How can investors with Massachusetts properties get rental property insurance?

For help assistance with one or more residential investment properties that are located in Massachusetts, get in touch the independent insurance agents at Flavin & Flavin Insurance. Our agents have worked with landlords throughout the state, and we’ll make sure you also find a policy that provides the coverages your investment properties need. You can trust us to recommend the best available rental property insurance policy regardless of what insurer offers it, because we’re an independent agency.