Investing in rental properties is a good option for many, but this venture can sometimes be risky. Being a landlord, you always have liability risks, and your property can get damaged or destroyed.
Here, rental property insurance can aid you in Massachusetts to protect yourself and your properties from varied types of risks that accompany this kind of investment. In simple words, landlord insurance is a policy for you if you rent out a home that you own.
It is an insurance that typically encompasses two different types of coverage: property and liability protection. The purpose of both the coverages is to protect you, the landlord, from any sort of financial losses.
Landlord Property Protection
The property protection in your landlord insurance policy characteristically helps cover your physical property related to the home you plan to rent out. It can include the house itself and the equipment you keep on the property site to maintain it.
Coverage Mostly Includes:
Dwelling coverage helps you pay to repair your rented home, condo, or apartment if fire, lightning, wind, hail, or other covered things harm your space.
- Other Structures
This area of your policy helps you pay for repairing detached structures on your rental property, like a detached garage or fence, if they get damaged by a covered loss.
- Personal Equipment for Maintaining the Rental Property
If you leave a snowblower or lawnmower onsite to maintain your rental property, landlord insurance can help cover this equipment if it gets damaged. However, if you left your vehicle or DVD player at your rented home, rental property insurance may not cover it.
Keep in mind the above types of coverages have some limits and deductibles given in your specific landlord policy. Your deductible is the sum you will pay for a covered loss before your rental insurance kicks in.
What is a Limit?
A limit is the maximum amount that your policy will pay after you suffer a covered loss. Every single coverage typically has its own separate deductible and limit. You may also be in a position to set your deductible and limit amounts for such coverages.
Landlord Liability Insurance
Landlord liability insurance is mostly known as liability coverage. It is an insurance plan particularly tailored for rental property owners. It is your safety guard against any financial damages you may experience if any visitor or resident tries to sue you for specific damages.
These damages can be in different forms. For example, it can be a financial problem, physical injury, emotional-offense, or even adverse death. Hence, landlord liability insurance is here to rescue you and can bear all your legal expenses, as well as hefty medical fees.
However, the attributes of legal claims are not one size fits all. You will find them in different forms. These encompass anything from theft, falls and slips, property damage, to various others. Because of this, the coverage will shoulder the expenses that come with your legal defense, no matter if you are guilty or not.
Who Should Take Landlord Insurance?
If you are an individual or a business in Massachusetts and have leased out your residential properties, you should consider purchasing a landlord policy. Mostly, sole proprietors, LLCs, and other corporations go for landlord insurance.
Though some of these structures offer you some legal protections, the protections that landlord property and landlord liability insurance coverages offer you are still important.
To sum up, it is crucial to speak with an agent who has experience with property rental insurances to help you choose the suitable rental property insurance. After all, not every landlord insurance policy is created equal.