Landlord Insurance Vs. Homeowner’s Insurance

Insurance rates have been more or less stable since 2015. Even landlord insurance has changed by about 1% from 2015 to 2019. Massachusetts ranks 44th when it comes to state size, but ranks top in population, in the New England region. It is home to Boston, the higher education hub of the World. It houses the famous Massachusetts Institute of Technology (MIT) or Boston Tech.

The city is thriving because of the college and universities, attracting about 350,000 students of varying nationalities. This has resulted in high demand for rental properties in the state. If you are looking at renting out your property to students or families, it is best to sign up for landlord insurance in Massachusetts immediately. If you wonder what sets this apart from homeowner’s insurance, these questions will help clear it up.

Who Occupies The Property?

The primary purpose of a landlord insurance policy is clear. It is to protect the landlord. Therefore it is obvious that renters occupy the property. It could be residential or commercial, but the landlord does not stay there. In the case of a homeowner’s policy, it is usually a requirement that the property owner lives in it. Also, it only covers residential property.

What Each One Covers?

A homeowner’s policy will cover property damage due to fire or accidental damage. It will also cover break-ins, personal property protection, and protection for other structures on the property. Usually, natural disasters are not included in a homeowner’s policy. You will need to purchase them separately.

A landlord insurance policy covers all of the above, and much more. Let’s say you include the loss of income coverage, and there is damage to your property due to fire or lightning. Suppose the damage makes the property unusable by tenants. In such cases, the insurance company will compensate for the rental income lost due to damage. Both policies cover medical expenses of injuries occurring on your property.

Which Structures Are Covered?

Landlord insurance Massachusetts will cover both residential and commercial property. This is the major distinction between the two types of policies.

You can include any attached or detached structures and surrounding areas within the property limits. It includes the parking space, the building’s surrounding area, and any other detached structure in commercial spaces. With over 38.29% of all properties in Massachusetts being rental, landlord protection is highly recommended.

With a homeowner’s policy, the coverage is limited to residential property. The policy covers the primary residence, plus any attached and detached structures. This includes a shed, garage, and fence too.

How It Protects Your Tenants?

A homeowner’s policy will not protect tenants as one of its requirements is that the owners live in the property. Only when you go for a landlord insurance policy will your tenants get benefits. The benefits include medical expenses for injuries due to property damage. The policy does not cover the loss of the tenants’ personal property. For that, the renters need to get a separate plan.

What Options Covers Can I Get?

Director’s Liability

This feature is unique to a landlord insurance plan. It protects the directors of your company against liability from stockholders, employees, or clients.

Inland Marine Insurance

This allows you to protect property while in transit.

Equipment Breakdown

This covers all electronic equipment within the building. It includes breakdowns, repairs, and cost of business interruptions.

Flood and Earthquake

If natural disasters are frequent in the area, it is best to add a flood and earthquake cover to your landlord policy.

Landlords are not just homeowners. Therefore, they need more than a homeowner’s insurance policy. Landlord insurance in Massachusetts is a great way to cover many landlords’ issues of both commercial and residential properties. It also provides extra coverage, depending on what you need.