Making sure you have the right coverage can save you money and peace of mind.

Contributor: Gregory R Porziella of Paul T. Murphy Insurance Agency

As a landlord, purchasing insurance is one of the most important decisions you can make. Understanding the types of coverage and the proper limits will help make sure you are properly protected with your investment.

Unless your property is owner-occupied, a standard homeowner’s insurance policy will not properly cover you for. You will need to obtain a specific insurance policy for rental properties. In some cases, it will be a Dwelling Fire Policy and it other cases, it will be a Business Owners Policy. Both policies include specific coverages designed for rental properties. Below are a few coverages you should consider when purchasing an investment property.

Loss of Rents/Business Income

Rental property insurance can provide coverage for not only damages to your building, it can also help with the loss of rental income if you have a covered loss. In cases where your property has been damaged and rendered uninhabitable, the tenants would not be liable to pay the normal rent until it was habitable again. With the right coverage, your policy will pay you the rents you cannot collect while the property is being repaired. If you’re paying a note on that property and are relying on the rents, lack of this coverage could be catastrophic.

Liability Coverage

Another coverage recommended is landlord Liability insurance. If one of your tenants, one of their guests, a contractor or even possibly someone walking by were to suffer an injury caused by something on your property, you could be looking at a costly lawsuit. It is not just for medical expenses or damage to property, but the injured person could sue for lost wages, emotional distress, and other related expense. Expenses can add up quickly, so it imperative that you have the right amount of Liability Coverage to covers these kinds of exposures.

About the Author

Greg Poriziella, Commercial Underwriter
Paul T. Murphy Insurance

I was born and raised in Melrose. I graduated from Melrose High School in 2002 and was accepted to Salem State College where I earned my Bachelors of Science in Business Administration in 2007. I started my insurance career at Paul Murphy Insurance in 2003, working as assisting customers, handling billing questions and filing paperwork. I passed the Massachusetts P & C Licensing exam in 01/2007, and I’ve continued to maintain my license.

I currently live in Malden with my wife, our dog Toby and our cat Jax. I enjoy playing basketball, yard work and working out. Fun Fact- I eat chicken for lunch every day. I also enjoy trying to teach my dog new tricks and watching all types of sports.

Paul T. Murphy Insurance Agency was founded in 1988, with the goal of becoming a full-service insurance agency dedicated to customer service and maximizing coverage for its loyal clients. Our agency has earned the reputation as one of the most well-respected, full-service insurance agencies through a commitment to provide unparalleled customer service and superior coverage from our respected carriers. We’re working hard to continue that legacy while looking forward to meeting new customer needs and insurance trends.