MA property Management dictates that if you rent your property out to tenants, then you need to have landlord insurance in place to protect it. Not only will your property be secured from harm but it will also let you sleep easy. The issue with renting out your property to renters is that you can be held liable for damage or injuries. It’s always a good idea to get insurance so that you don’t have to pay anything out of your own pocket. Many landlords do get insurance but then not everyone gets the right type of insurance. This guide lets you know what sort of insurance to get.
Homeowner Insurance and Landlord insurance
Homeowner insurance is only valid for properties which are occupied by the owner and comprise of a single family. If you don’t meet that criterion, you are not covered because Insurance companies do not want to that risk. There tend to be more claims on tenant occupied properties and this is why the premiums for homeowner insurance do not cut it. A homeowner insurance policy does cover your house if you have someone staying there taking care of it while you are away. However it won’t let you rent it out to different tenants. This is why it’s important to get Landlord insurance if you are renting your property out. This will also save you from a heap of trouble.
MA Property Management: Landlord insurance policy
A landlord insurance policy will cover you for the following:
- Residence coverage for casualty from fire, lightning, burst pipes, flooding, and wind
- Additional structures coverage for outbuildings and garages
- Landlord liability insurance
You can choose all three of the above or you can get extensive coverage with the insurance policy you choose.You don’t need to get every component of Landlord Insurance unless it is absolutely necessary.
Look at the terms of the coverage and see if you really need that particular coverage. For example if there is no liability insurance coverage, then look to add it so that it can cover you in case there is any legal expenditure in the event of a tenant lawsuit. Liability insurance can save you from going bankrupt if there is a lawsuit.
We hope you enjoyed “MA Property Management: Landlord Insurance Part 1″.