LANDLORD INSURANCE IN MASSACHUSETTS

What Is Landlord Insurance?

As a landlord in Massachusetts, your rental property is an ongoing investment that requires ongoing protection. Landlord insurance — also known as rental property insurance — is a special type of insurance coverage for those who rent out residential properties, including single-family houses, townhomes, apartments, or multi-unit dwellings. This type of insurance protects your rental properties while also providing personal liability coverage.

With 33% of Massachusetts homes occupied by renters, it is more important than ever for homeowners to secure landlord insurance for tenant damage, natural disasters, and on-premises injuries.

Who Needs Landlord Insurance in Massachusetts?

Even though landlord insurance is not legally required in Massachusetts, whether you need coverage may depend on your rental property’s loan agreement. Some lenders require rental property insurance as part of your home loan contract.

What Does Landlord Insurance Cover?

While your specific coverages may vary depending on your specific insurance provider and the details of your policy, most landlord insurance covers the following:

Dwelling coverage for fire damage, storm damage (including lightning, hail and wind), and other covered losses.
Structural coverage for detached structures on your property, such as garages, storage sheds, etc. that are damaged by a covered loss.
Personal property coverage for equipment used to service the rental home (lawn mowers, snow blowers, etc.).

Liability coverage for medical and legal fees incurred when someone is injured on property.
Loss of rental income coverage for instances where a covered peril makes the property uninhabitable for a period of time.

You may be able to consider supplementing your landlord insurance policy with additional coverages, such as:

Vandalism
Burglary
Rental property under construction

What Does Landlord

Insurance NOT Cover?

Landlord insurance covers most of the basic needs associated with keeping your residential rental property protected in the event of disaster. However, there are a few instances not typically covered by rental property insurance, such as:

Loss of tenant personal property/belongings
Maintenance and appliance failures
Shared properties, such as when you live in a residence and rent out a portion of that residence at the same time

Losses associated with evictions
Losses due to flooding or earthquakes

What Does Landlord Insurance Cost?

There are many different factors at play when it comes to how much a landlord insurance policy may cost. Each of the following can impact the amount you pay for rental property insurance:

The building’s location. An area with higher rates of theft, vandalism, and natural disasters may carry a higher insurance premium.
The building’s construction materials. Whether your property is constructed from wood, brick, or other building materials dictates its ability to withstand elements like wind and fire. These factors are taken into account when determining the cost of your policy.

The landlord’s insurance claims history. Submitting multiple insurance claims within a short period of time can cause your policy to be more expensive.
The coverages selected to be included in the landlord insurance policy. If you add more coverages beyond the base protections, your premium will be higher.

What Property Types Are Covered by Landlord Insurance?

Massachusetts landlord insurance typically covers any type of residential structure, including standalone, single-family dwellings, multi-family properties, apartments, condos, townhomes, tiny houses, Airbnb properties, and most other residences.

Key Considerations for MA Property Owners

If you already have robust homeowners insurance, you may be asking yourself if you really need landlord insurance. Depending on the specific circumstances surrounding your rental properties, the answer could be yes or no.

Long-term Rentals
If your rental properties are inhabited by the same tenants for six months or longer, then a landlord insurance policy is essential. More time spent in your rental property means there are more opportunities for damage or injuries to occur.

Short-term Rentals
Many homeowners insurance policies do not provide coverage for secondary properties that are rented out to different short-term renters on an ongoing basis. For example, if you list an investment property for short-term rental on Airbnb, you’ll need a landlord insurance policy for proper protection.

Sporadic Short-term Rentals
If you rent out your investment property infrequently for short periods of time, then your homeowners insurance coverage may be adequate and landlord insurance may not be necessary.

Why Choose C&S For Landlord Insurance?

Selecting C&S to help you find the landlord insurance that’s right for you means teaming up with local, independent agents who know the area well and have your best interests in mind. Whether you are looking to purchase landlord insurance in Massachusetts for the first time or considering making a carrier switch, we’ll work to ensure your policy keeps your rental property protected at the best rate possible. Check out a few of the benefits of working with C&S:

Get the dedicated support you need and deserve with a local agent who takes the time to get to know you, your family, and your property. Forget reaching an automated menu when you call for support —at C&S, your account manager is your direct point of contact whenever you need assistance.
Gain access to more carrier options when you team up with our local, independent agents. For example, here at C&S, we work with more than a dozen companies who write MA home insurance policies. It’s always great to have many options, especially if your insurance needs are unique or complex, if your rental property insurance ever gets canceled, or if you’re looking to bundle your auto/boat/trailer insurance policies.
It’s a simple fact that Massachusetts agents understand Massachusetts landlord insurance. We fully understand the risks that local property owners encounter (floods, hurricanes, frozen pipes, ice dams, sewer backups), and we keep our clients informed when New England weather or other local trends threaten to impact our neighbors’ homes and condos. Our quarterly newsletters will serve as reminders for when it’s time to clean your gutters, inspect your trees, check for termites, or clean your chimney and dryer vent: all the steps that help prevent insurance claims from arising in the first place.

Frequently Asked Questions

Can I get landlord insurance for a room I rent out of my primary residence?

No, landlord insurance is not applicable for shared properties. In this case, since you live in the dwelling where you rent out space, landlord insurance would not apply.

What are the most important things to look for in landlord insurance?

When shopping for a landlord insurance policy, you should ensure that property damage, personal liability, and loss in income coverages are included.

Does landlord insurance provide coverage if my tenants fail to pay rent?

No, landlord insurance does not kick in if your tenants do not pay rent.