Massachusetts Rentals: What is Landlord Insurance and Why Is It Important?
Massachusetts, a state rich in history, is located on the northeast edge of the United States. Home to almost seven million, it is the most populous state in the New England region. Many of its residents are renters. In the state capital Boston, 61% of the over 600,000 population live in rental households.
Unknown to many, renting out your home, apartment, or condo unit in Massachusetts involves more than just collecting the monthly rent. It entails a lot of responsibilities, some in the form of unplanned extra costs. If you do not want to be caught off guard while your property is being leased, you should get the best landlord insurance Massachusetts lessors can avail.
What is a Landlord Insurance?
Landlord insurance is the layer of protection that guards the interest of the person owning the rental property. It distinguishes from the need of the renter or tenant who does not have the same personal stake. It is also different from the homeowners’ insurance, which covers only houses occupied by the actual owners.
Some novice landlords leasing a property often mistake that their homeowners’ insurance would still apply. However, the minute you engage in income-generating activities using your property, it is considered a business and not a personal dwelling. As such, it requires additional protection, which is the landlord insurance in Massachusetts.
Why Should You Get Landlord Insurance?
No self-respecting landlord, novice or experienced, would have peace of mind without landlord insurance for the following reasons:
- Damage to Property
There is always a possibility that your property may be damaged by fire, wind, or hail while leased to a tenant. In such events, you can claim coverage for the repairs of the damage incurred by your property.
There are also some instances the tenants themselves cause damages. If it is considered as malicious, the renters can be sent away. If the renters were not able to pay for the damage before leaving, you could claim for insurance coverage of your property through the landlord insurance.
- Loss of Rental Income
One of the worst fears for any landlord is for the property to become temporarily uninhabitable. Mold or pest infestations and the appearance of a sinkhole within the premises are some of the many instances that would cause this. With landlord insurance, you can claim temporary rental reimbursement for the duration of the repair, during which tenants cannot occupy it.
- Landlord Liability Protection
An important part of your responsibility as a landlord is the safety of all property occupants, permanent and otherwise. It would help if you kept your walkways safe from slips and trips, make sure that the property is structurally sound, and constantly watch for signs of dangerous pests such as beehives. Still, accidents could happen despite your best efforts at maintenance. In these instances, your landlord insurance in Massachusetts is a lifesaver. This feature covers the medical bills incurred from both medical and legal costs that ensue if a tenant or a visitor gets injured while inside the premises of the property.
Safety is Always Worth the Cost
Insurance is one of the most common things people brush off as unimportant. They do not see it as deserving of the cost. Some may even decide against it. They do so without realizing the risk to their properties, even those for lease. These investments which generate income also need security in the form of landlord insurance. Like many other businesses, it is subject to the same risks and needs to be protected. Get your landlord insurance quotes now!