Rental Property Insurance From a Massachusetts Based Insurance Specialist

Coonan Insurance Agency, Inc. can help you find affordable, quality rental property insurance with ease!

We offer Rental Property Insurance coverage in Massachusetts, Maine, New Hampshire, Rhode Island, Maine, New York and Florida.

Please ask one of our agents how we can provide you with insurance across multiple states.

What is Rental Property Insurance?

Rental property insurance, also known as investment property insurance, is a specialized insurance policy designed to protect landlords and property owners from financial losses associated with their rental properties. This type of insurance typically covers damages to the structure of the property, liability risks, and loss of rental income due to covered events.

What does Rental Property Insurance Cover?

Rental property insurance may cover:

Property Damage: Coverage for the physical structure of your rental property in case of fire, windstorm, vandalism, or other covered perils.
Liability Protection: Coverage if someone is injured on your rental property and you are found legally responsible. This may include legal fees and medical expenses.
Loss of Rental Income: Reimbursement for lost rental income if your property becomes uninhabitable due to a covered loss, such as fire or storm damage.
Additional Living Expenses: Coverage for temporary relocation costs if your tenants need to vacate the property due to covered damages.
Personal Property of the Landlord: Protection for items you keep on-site for maintenance or upkeep of the rental property.
Dwelling Coverage: This may cover the structure of your rental property, including walls, roof, floors, and attached fixtures.
Other Structures Coverage: This may cover detached buildings on the property, such as garages or sheds.
Loss of Rental Income: If your property becomes uninhabitable due to a covered event, this coverage may help compensate for lost rental income while repairs are made.
Personal Property Coverage: This may cover your own belongings kept on the property, such as appliances or furniture provided for tenant use.
Medical Payments: This may help cover medical expenses for a guest or tenant who is injured on your property.

Quotes Available in MA, RI, CT, NH, ME, NY and FL

What Doesn’t Rental Property Insurance Typically Cover?

While rental property insurance offers valuable protection for your investment property, it’s important to understand what situations and events might not be covered by your policy. Here’s a closer look at some common exclusions:

Floods and Earthquakes: Disasters like floods and earthquakes are typically excluded from standard rental property insurance policies. If your property is located in a flood-prone area, you may want to consider purchasing separate flood insurance through the National Flood Insurance Program (NFIP). Similarly, earthquake insurance may be necessary depending on your location and risk factors. An insurance agent may help you explore these additional coverage options.
Normal Wear and Tear: Rental property insurance is not designed to cover the gradual deterioration of your property due to everyday use. For example, wear and tear on carpets, appliances, or paint would typically not be covered. Proper maintenance of your property is essential to minimize wear and tear and extend the lifespan of your investment.
Intentional Damage: If you or your tenant intentionally damages the property, this would likely not be covered by your rental property insurance policy. Vandalism by a third party, however, may be covered depending on the specifics of your policy.
Business Pursuits Conducted on the Property: Rental property insurance is intended to cover residential properties. If a tenant operates a business out of your rental unit without your knowledge or permission, and this business activity causes damage, it might not be covered by your insurance. It’s important to clearly outline acceptable uses of the property within your lease agreement with your tenants.

How Much Does Rental Property Insurance Cost?

While there’s no one-size-fits-all answer, understanding the key factors that influence the cost of rental property insurance in Massachusetts may help you budget and make informed decisions. Here’s a breakdown of the main elements that determine your premium:

Property Value: The insured value of your rental property is a significant factor. Generally, higher property values translate to higher insurance costs. This is because the insurance company would be responsible for a larger payout in the event of a covered loss.
Location: The location of your property plays a big role in determining your premium. Areas with higher crime rates, frequent natural disasters, or proximity to bodies of water (flood risk) may see higher insurance costs. An insurance agent may help you understand the specific risks associated with your property’s location.
Coverage Selection: The type and amount of coverage you choose will directly impact your premium. Standard policies typically cover dwelling structure, personal property (landlord-owned items on the property), and liability. However, additional coverages like loss of income due to vacancy, increased liability limits, or valuable items coverage will increase your overall cost.
Claims History: Your past claims history may also affect your premium. If you have a history of filing claims on previous properties, you may see a higher rate. Maintaining a clean claims history may help you keep your insurance costs down.

What are the Additional Considerations for Rental Property Insurance in Massachusetts?

While we’ve covered some key points, here’s a deeper dive into additional considerations for rental property insurance:

Loss of Income Due to Vacancy:

Coverage Details: Some rental property insurance policies may offer coverage for lost rental income if your property remains vacant for a certain period after a covered event, such as a fire or major storm damage. This coverage typically kicks in after a predetermined waiting period (often 30 days) and may have limitations on the total duration of coverage (e.g., 12 months).
Finding the Right Policy: Not all rental property insurance policies offer vacancy coverage. Be sure to ask your Agency representative about this option and understand the specific terms and limitations before purchasing a policy.

Code Violations and Maintenance:

Understanding Exclusions: Damage caused by a lack of proper maintenance or failure to comply with building codes is typically not covered by rental property insurance. For example, if a pipe bursts due to neglected frozen pipes in the winter, the resulting damage may not be covered.
Maintaining Your Property: Regularly inspecting and maintaining your rental property is crucial for preventing potential problems and ensuring your coverage remains valid. This includes tasks like scheduling routine maintenance for heating and plumbing systems, addressing minor issues promptly to prevent them from escalating, and ensuring smoke detectors and carbon monoxide detectors are functioning properly.

Tenant Screening:

Proactive Risk Management: While not directly related to your insurance policy, a thorough tenant screening process is a vital step for any landlord. Carefully screening potential tenants may help reduce your risk of encountering problematic tenants who may damage the property, fail to pay rent, or engage in disruptive behavior. Here are some elements of a strong screening process:
- Credit check
- Background check
- Verifying employment and income
- Checking references from previous landlords

How can I get Rental Property Insurance in Massachusetts?

Reach out to the Independent Agents at Coonan Insurance Agency for a fast quote on rental property insurance in Massachusetts! Get the peace of mind you deserve knowing your investment property is protected. We’ll work hard to find you a competitive rate and coverage that fits your needs.

Get a Quote!

Submit your information and one our friendly agents will get back with you shortly.