Landlord Insurance in Massachusetts

What is Landlord Insurance?

Owning investment properties that are leased out can be a profitable venture, but it’s work that comes with certain risks. Landlords are exposed to both potential property damage risks and possible liability lawsuits, and they generally need to protect their businesses from both. Landlord insurance helps investment property owners in Massachusetts protect themselves from many of the risks they face.

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Landlord insurance is a specialized form of property insurance that’s crafted to meet the unique needs of landlords. Policies frequently come with multiple coverage options, and many insurance companies offer policies for a wide range of investment properties. Property owners might get these to protect leased single-family houses, duplexes, multi-unit buildings, mobile homes, commercial spaces or other investment properties.

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Landlord Insurance Massachusetts

Who in Massachusetts Needs Landlord Liability Insurance?

The vast majority of people and businesses that own investment properties in Massachusetts, including both in-state and out-of-state investors, should have landlord liability insurance through an insurance company that operates in the state. This usually includes all of the following:

  • Individuals who purchase a single rental property
  • Individuals who manage a portfolio of properties
  • Individuals who incorporate and invest in properties
  • Businesses that have multiple properties

Moreover, insurance is normally necessary irrespective of whether properties are managed by an investor or through a property management company. Even landlords who have a hands-off approach to managing properties might be sued and therefore, probably should have landlord liability insurance.

Do Homeowners Who Take in a Boarder Need Landlord Liability Insurance?

Homeowners who take in one or more boarders as a supplemental (or primary) source of income are in a peculiar situation with regards to liability risk. They should speak about their specific situation with an insurance agent who specializes in landlord liability insurance. Sometimes a homeowners policy may offer sufficient protections, but other times a landlord liability policy might be necessary.

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What Coverages Do Landlord Policies Provide?

Most landlord policies provide a combination of property protections for insured properties and liability protections for landlords themselves. In addition to these, policies may also offer other coverages that limit potential costs or losses. Some such coverages might include:

  • Rent Guarantee Coverage, which might cover unpaid rent fees
  • Legal Assistance Coverage, which might pay legal fees for non-liability matters
  • Loss of Income Coverage, which might cover lost revenue following a disaster

How Much Do Landlord policies Cost?

As is true with most insurance policies, insurers consider many factors when setting premiums for landlord policies. Some of the items that can influence how much a specific policy costs may include:

  • Where an investment property is located
  • How a property is constructed
  • How many units a property has
  • How many square feet a property has
  • What other structures are insured
  • Whether the landlord has filed insurance claims recently

Even with variance among policies’ premiums, the vast majority of landlord policies are affordable. Paying a monthly, semi-annual or annual premium is almost certainly less expensive than what facing a major claim with no coverage in place could cost.

Landlord Insurance Massachusetts

Can Landlords Deduct Their Landlord Policies’ Premiums?

Tax laws change periodically and must be applied to each person’s situation, so landlords should seek advice from an informed advisor before taking any business tax deduction.

Generally speaking, however, landlord policies’ premiums can usually be deducted as a business expense as long as the premiums are used to insure only investment properties. Premiums for policies that insure a personal residence and investment property might not be deductible or may only be partially deductible.

How Can Landlords in Massachusetts Get Landlord Insurance?

For help insuring investment properties in Massachusetts, contact the independent insurance agents at Scotti Insurance Agency. Our agents have helped many landlords purchase landlord insurance for themselves and their properties, and we’re ready to assist you.

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