Making sure you have the right types of coverage can help save you money and peace of mind.
As a landlord, purchasing insurance is one of the most important decisions you can make. Understanding what type of coverage, and how much of it you need, can be one of the most important decisions you make with your property.
Unless your is owner-occupied, a standard homeowner’s insurance policy won’t cover you for losses caused by your tenant. You’ll need to obtain insurance specifically for rental properties and you’ll have a few more considerations than you may have had with standard home owner’s insurance policies. In Massachusetts, it’s called ‘dwelling fire policy.’
Loss of Income
Rental property insurance can provide coverage for not only damages to your building, it can also help with the loss of rental income when severe damages occur. In cases where your property has been damaged and is rendered uninhabitable, the building would cease generating income for you until it was habitable again. If you’re paying a note on that property, this could be catastrophic.
Another coverage option to consider 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. And it’s not just for medical expenses or damage to property, but the injured person could sue for lost wages, emotional distress, and other related expense. It can add up quickly, so make sure that you have the right amount of landlord liability insurance to covers these kinds of exposure areas.