Rental Property Insurance from Massachusetts Specialists

Roger Keith & Sons

What is rental property insurance?

Residential investment properties can provide both short-term revenue and long-term appreciation, but they can also come with various risks. Rental property insurance can help Massachusetts investors protect their properties and their businesses, helping maintain short- and long-term finances even when a covered incident happens.

Rental property insurance has specialized commercial coverages for investors with residential properties. The insurance is similar to home insurance in some ways, but also has notable differences.

Who in Massachusetts needs a rental property policy?

Most investors who own residential properties in Massachusetts should have rental property policies. This includes solo investors and larger residential investment businesses.

In many cases, investors and investment businesses are required by loan terms to carry certain rental property coverages. Many lenders include language to this effect in their loans, as an assurance that their financial interest in financed investment properties is protected.

What coverages can investors get through rental property policies?

Rental property policies can come with various coverages, and most investors choose policies that combine several coverages together. Some of the more notable coverages that policies may offer are:

• Rental Liability Coverage, which could cover lawsuits that result from accidents involving tenants or their guests
• Commercial Property Coverage, which could cover both primary and secondary buildings against damage or loss
• Commercial Contents Coverage, which could cover appliances, HVAC equipment and furnishings against damage or loss
• Rental Guarantee Coverage, which could cover some or all lost revenue when tenants don’t pay for extended periods
• Loss of Income Coverage, which could cover some or all lost revenue when a property is unrentable following a disaster
• Legal Assistance Coverage, which could cover attorney costs and court fees associated with non-liability lawsuits

Investors who have vehicles that are used exclusively for work also may need commercial auto coverage, which is generally used to insure work vehicles. Commercial vehicle coverage is a common feature in multiple rental property insurance policies, and usually can be obtained through any rental property policy.

An insurance agent who specializes in single and multiple rental property insurance policies can help investors find a policy that has the coverages they need.

Do rental property policies extend coverages to tenants?

The coverages included in rental property policies typically extend only to investors, and not to tenants. Tenants may purchase their own renters insurance policies.

How are rental property policies and home insurance policies different?

Rental property policies and homeowners insurance policies are similar in that they both generally protect a property and its contents. Beyond this, however, the policies largely diverge.

Most rental property policies provide different coverages that protect against lost revenue. Homeowners insurance policies are unlikely to have rental guarantee or loss of income coverage, for example.

Most homeowners insurance policies provide personal liability coverage, which may cover legal costs associated with a host of liability lawsuits. Although rental property policies usually have rental liability coverage, this usually is limited to property-related lawsuits. It’s not the same as personal liability that protects against non-business risks.

How much are premiums for rental property policies?

Premiums for rental property policies can vary dramatically. While multiple rental property insurance policies tend to cost more than comparable single rental property policies, there are many factors that impact cost. Insurers frequently consider:

• Number of properties insured
• Number of units in each property
• Age, construction and size of each property
• Location of properties
• Past claims history of investor

How can residential property investors in Massachusetts get rental property insurance?

For help insuring one or more rental properties located in Massachusetts, contact the independent insurance agents at Roger Keith & Sons Insurance. Our agents can help you with multiple rental property insurance policies or single rental property insurance policies, and we can show you the best options from a variety of insurers since we’re an independent agency.