What is landlord insurance?
Rental properties require substantial capital investment, and it’s important for Massachusetts landlords to make sure their investments are protected against loss. One way to better protect the capital that’s put into rental properties is to protect them with landlord insurance.
Landlord insurance offers tailor-made coverages for rental properties. Policies usually have coverage options that can protect properties, the landlord, and the landlord’s income.
What real estate investors in Massachusetts need landlord policies?
Landlord policies are mainly for Massachusetts landlords with rental properties of 1-4 units. Policies may insure single-family houses, duplexes, townhouses, condos, and tri- and quad-plexes. Once a property has 5 or more units, a different type of insurance policy is typically needed.
In cases where rental properties are financed, coverage is often required by the lender. Landlords are broadly encouraged to get insurance regardless of whether their property is subject to a lender’s requirement, however.
Can landlord policies insure commercial properties?
Landlord policies are mainly intended for smaller residential properties, and not for commercial properties such as retail or office spaces. Non-residential commercial properties typically require a different commercial property insurance policy.
The same is true of mixed-use properties that have residential and commercial spaces. A standard landlord policy usually won’t provide all of the coverages that mixed-use properties need, and a different type of policy should probably be chosen.