What Protections Do Landlord Policies Provide?
Like most kinds of insurance policies, the protections offered by landlord policies can vary. Most policies, however, provide two main protections: landlord property insurance coverage and landlord liability insurance coverage.
Landlord property insurance coverage helps protect the property a landlord owns from certain perils that could cause damage. Depending on a policy’s terms and conditions, it might offer protection from fire, burglaries, windstorms, lightning and similar risks. These protections may only be offered for a property’s primary structure, or they might be extended to secondary structures (e.g. detached garages, sheds, fences, etc.).
Landlord liability insurance coverage helps protect landlords from possible liability lawsuits that tenants or others could file. For instance, if a tenant was injured on a leased property because the property wasn’t properly maintained, they might file a lawsuit and a policy may cover the suit. When suits are covered, landlord liability insurance coverage will typically cover any associated legal fees, judgements and settlements.
Along with these two primary protections, there are some other protections that landlord policies may offer:
- Rent Guarantee Coverage, which might pay a landlord if a tenant doesn’t pay rent
- Landlord Contents Coverage, which might extend protection to the items a landlord owns that are kept inside a rented unit
- Legal Assistance Coverage, which may extend coverage for legal fees to incidents other than liability lawsuits
- Loss of Income Coverage, which might provide compensation if a covered incident reduces a landlord’s income
Are Tenants Covered by Landlord Policies?
Landlord policies are generally designed to protect only landlords. Their coverages typically don’t extend to tenants or belongings that tenants own. Tenants can obtain their own insurance through renters policies.
Who in Massachusetts Needs a Landlord Policy?
Most people who rent residential property in Massachusetts should consider getting a landlord policy. While having an LLC or other business structure may provide some protection from lawsuits, insurance offers an additional layer coverage. Additionally, the coverages offered by insurance is different from that provided by a business structure.
In some cases, landlords may be required to carry a landlord policy. While landlords usually aren’t legally obligated to be insured, those who have loans may find terms in their loan that require them to be insured. Lenders frequently include such a requirement so that their financial interest in a rented building is protected.
What Impacts How Much Landlord Policies Cost?
Insurance providers take into account many factors when they calculate landlord policies’ premiums. Some of the factors they consider include:
- Where a building is
- What a building is constructed from
- How many units are in a building
- Whether a landlord has previously filed insurance claims
- What coverages and limits a landlord wants
How Can Massachusetts Landlords Get Quotes for Landlord Insurance Policies?
For help finding landlord insurance, landlords should contact an independent insurance agent in Massachusetts. An independent insurance agent can help with coverage selection, and they can request quotes for landlord policies from several insurers. After receiving several quotes, an agent can help select the policy that best suits a landlord's situation.
