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It might sound like being a Landlord Insurance is one of the easiest ways to earn some money, but this job comes with many responsibilities and is highly demanding. Being a landlord means you have to rent your properties out to other people, even strangers sometimes. This is why you should have plans in place to avoid excessive charges from potential damages occurring to or on your property.
Many landlords, especially new ones, are under the impression that a homeowner’s insurance should be enough to cover such damages. Still, the truth is, as soon as you rent a property out, homeowners insurance will no longer be applicable.
Landlord insurance is a necessity for landlords in the state of Massachusetts. These insurance plans are there to protect the rights of landlords as well as their properties against risks.
Therefore, you must learn about landlord insurance, MA, if you’re planning to rent out your properties anytime soon.
What Does a Landlord Insurance Policy Entail?
If you have a rental or commercial property, then you can buy landlord insurance, MA, so that you are covered against financial risks associated with your property.
The types of properties covered under a landlord insurance plan are:
- Residential buildings
- Commercial and industrial properties
- Storage spaces and warehouses
- Shopping plazas
The type of outcomes covered under the landlord’s insurance policy are:
- Loss of rental income due to damage caused to the property that has left the renters homeless
- Coverage against legal charges in case a tenant or guest is hurt on the rented-out property
- Damage incurred to the property of the owner left in the rented-out complex/building
Why Would You Need Landlord Insurance at All?
If you own a rental property of any kind, you should be prepared for any issues arising on them, including damages or risks surrounding the property. Such an insurance policy covers all sorts of eventualities and offers coverage to many properties (attached or detached).
Massachusetts is known for its high demand for rental properties, with over one million homes renter-occupied. Sommerville has the highest percentage of renters at 69.4%, followed by Cambridge and Lawrence at 67.8%. The figures are promising for the landlords. With this comes the responsibility of having good insurance coverage as well. This sort of insurance is geared more towards owners that intend to frequently or regularly rent out the properties they own.
Think of these policies as a sort of investment to secure your future as a property owner.
How to Select the Appropriate Coverage for Your Needs?
With the median rental cost at $684, landlords need enough insurance coverage to protect their interests. You can choose one or more coverage options based on the property you own, coverage against liabilities, and add-on options.
Details of coverage:
Based on the type of coverage given to properties:
- To commercial buildings
This type of coverage is offered to the land or buildings built upon the land and the personal belongings on said property.
- To personal properties on rentals or business complexes/buildings
Building coverage is extended to the façade, the remaining structure of a building, and any attached properties owned by the insured individual. Coverage on personal properties includes any furniture or fixtures, inventory, your employee’s or tenant’s property if it is under your care.
- Coverage against employee dishonesty
This sort of coverage protects the employer from any form of fraudulent activity conducted by an employee.
- Insurance covering inland marine transit
Property is insured during transit over land. This coverage is extended to moveable properties and transportation and contractor instruments (bridges and piers).
Based on liability:
- Coverage for general liability
It entails all injury or damage to the property caused for which the insurance holder is responsible.
- Coverage for medical payments
All medical expenses arising from bodily injury caused on the insurance holder’s property or for which the insurance holder is directly responsible.
- Coverage for fire damage
This is a particular sort of insurance covering the insurance holder’s property against damages caused by fire.
- Coverage against claims raised against directors or officers
Claims can be submitted against the director or officers by the company’s employees, clientele, or stockholders since the higher-ups can be held directly responsible for the actions of the company.
Depending on what kind of property you’re renting out or what sort of coverage you’re looking for, landlord insurance, MA is quite essential. For a responsible landlord, owning sufficient property damage or risk coverage from a trusted insurer is equally important. Work with an independent agent to get more options and proper guidance to choose the best one.