Best Landlord Insurance in Massachusetts
- Best Landlord Insurance in Massachusetts
In Massachusetts, landlords face various risks from the weather, crime, and more. Demand for rentals is fierce, especially in and around Boston. Unexpected damage to a rental property can cost landlords valuable time and money.
The right landlord insurance can financially mitigate the effects of unexpected damage in several ways. Landlords looking for the best coverage in Massachusetts should use this guide, where we go over average rates, cheap companies, common cost factors, and more.
How Much Is Landlord Insurance in Massachusetts?
Average Massachusetts landlord insurance costs are approximately $1,206 per year on a $200,000 home, $1,811 per year on a $300,000 home, and $2,414 on a $400,000 home.
It’s hard to capture the average landlord insurance cost in Massachusetts with a single number since there isn’t a single type of rental property. Many different dwellings can serve as short-term, seasonal, or long-term rentals. The type of building, length of rental, and more affect premiums.
Another notable factor is the cost of the dwelling. It determines how much coverage you need. We estimated the costs of average rental property insurance in Massachusetts at a few common coverage levels.
Average Cost of Landlord Insurance in Massachusetts
Cost of House
You’ll generally find that landlord insurance rates are 15% to 25% higher than homeowners insurance rates on the same homes. Insurers believe tenant-occupied homes are more likely to suffer damage than owner-occupied homes. They’re also larger liability risks due to the potential number of unknown tenants and guests.
What Does Landlord Insurance Cover in Massachusetts?
Insurance for landlords in Massachusetts covers several types of rental properties in several ways. You can get landlord insurance for:
- Single-family homes
- Multi-family homes (duplexes, fourplexes, etc.)
- Apartment units and buildings
- Condo units and buildings
Depending on your chosen plan, landlord insurance can cover property damage, landlord liability, and loss of rental income.
Dwelling coverage protects the physical structure of your rental property, including the roof, walls, flooring, patios, and more. The amount you need is based on the replacement cost of the property.
Other structures coverage in landlord insurance guards features on your property not attached to the main dwelling. These typically include fences, detached garages, sheds, carports, and pools.
Personal Belongings Coverage
Personal property coverage in landlord insurance is useful if you keep items at your rental for maintenance, such as lawn equipment or tools. These items will be financially protected if stolen or damaged.
Landlord Liability Coverage
Landlord liability coverage kicks in if a guest or tenant sues you after they get hurt at your property. This can help pay for medical expenses, legal fees, and more.
Loss of Income Coverage
If your tenants are forced to move out of your rental after a covered loss, loss of rental income coverage can help cover the payments you’d be missing out on while your property is vacant and undergoing repairs.
Types of Rental Property Insurance in Massachusetts
Landlord insurance is officially known as dwelling fire (DP) insurance. You can get three types of DP policies separated by cost and coverage levels.
DP-1 Insurance Policy in Massachusetts
DP-1 plans are the most basic and least expensive DP policy. They cover the fewest perils, or potential sources of damage, such as fire, lightning, and wind damage.
DP-1s also cover property losses at actual cash value, so your insurer will factor in the depreciation of all damaged items before reimbursing you.
DP-2 Insurance Policy in Massachusetts
DP-2s are mid-level policies that cover more perils than a DP-1, including theft, vandalism, water damage, and falling objects. They also cover property losses at replacement cost, meaning your provider can reimburse you what you paid for an item when you file a claim, no matter the age of the item. DP-1s and DP-2s may exclude liability and personal property coverage.
DP-3 Insurance Policy in Massachusetts
DP-3s offer the broadest coverage at the highest cost. They cover all instances of damage except those explicitly excluded. They often have the highest coverage limits and include liability and personal property coverage by default.
How to Get the Best Landlord Insurance in Massachusetts
The best landlord insurance in Massachusetts will vary by the landlord, depending on your budget and coverage needs. You should review each policy’s coverage and exclusions before choosing a plan. Compare quotes from several providers to find the best deal.
DP-3 policies provide the most protection but may not always be the best option. If a DP-3 stretches the budget too much, you’ll need another policy that best suits your needs. Also, depending on your property, you may feel comfortable with a less comprehensive plan anyway.
For instance, if your rental property is sitting vacant for an extended period, you may be ok with dropping liability coverage since no one should be there to get hurt.
Alternatively, if you live some distance from your rental and can’t easily monitor it, you may see coverage from theft and vandalism as necessary, so a DP-1 won’t suffice. Understand what you need and don’t need before getting a policy.
What to Know if You Need Apartment Building Insurance in Massachusetts
Owners of entire apartment or condo buildings will want to be sure they have the right apartment building insurance in Massachusetts. Bigger, more expensive buildings will likely cost more to cover.
Apartment building insurance in Massachusetts will cover property damage and liability. If your building has other structures, such as carports or a pool, ensure that your plan covers them sufficiently. Note that as a landlord, your insurance policy won’t cover tenants’ belongings in their units or damage they may cause.
You’ll almost certainly need liability coverage in your policy. Several factors can contribute to an accident in even the most well-maintained apartments, like the number of stairwells, the age of occupants, weather conditions, and more. If an injury occurs at your rental property, residents quickly look to the building owner. Liability coverage can pay for medical expenses, legal fees, lost wages, and more.
The coverage we’ve discussed above is for residential landlords. You don’t need residential landlord coverage if the complex’s name is in a trust or under a limited liability company. Instead, you need a type of commercial insurance that will cover some business risks in addition to property damage and liability.
Which Companies Have the Cheapest Landlord Insurance in Massachusetts?
Arbella and Mapfre tend to have cheap landlord insurance in Massachusetts, but the cheapest provider for you depends on your location, desired coverage amount, and more.
Below, we organized the average rates of some of the most popular landlord insurance companies in Massachusetts.
Average Landlord Insurance Cost in Massachusetts
Rates ranged by up to $487 for $200,000 of coverage, $239 for $300,000 of coverage, and $778 for $400,000 of coverage just from these five providers. This underlines the importance of comparing quotes.
Andover, Arbella, and MAPFRE are popular regional insurers in the Northeast, while Travelers and Amica are national providers. It might be a good idea to get quotes from both regional and nationwide carriers to note possible differences in price and customer service.
Factors Influencing Massachusetts Landlord Insurance Costs
Several factors affect the cost of insurance for landlords in Massachusetts. Carriers analyze several aspects of you and your property to determine financially sound premiums. Some of the most important ones are:
- Location: The location of your rental property will significantly impact your premiums. Insurers will look at local crime rates, distance to the nearest fire stations, and more. Rental properties on the Atlantic coast of Massachusetts may have higher premiums due to the increased chances of wind damage from hurricanes and tropical storms.
- Property type: Multi-family dwellings will likely have higher premiums than single-family ones due to their increased sizes and tenants. Also, short-term rental properties with multiple different tenants and vacancies throughout the year will have higher premiums than long-term leases.
- Property age: Older properties tend to cost more to insure since older rentals often have more issues that lead to claims due to wear and tear or previous damage. Older roofs, pipes, wiring, and more make older properties riskier.
- Coverage levels: Naturally, the more insurance you get, the more you’ll pay. Larger, more expensive properties will always need more insurance coverage than smaller ones. Additionally, opting for extra coverage or adding endorsements will raise rates. Raising your deductible can also lower premiums and vice versa.
- Claims history: If you or your property has a history of filing insurance claims, you’ll likely pay more for coverage. This indicates to your insurer that they’re more likely to have to pay out a claim, so they will raise your premiums to offset this risk.
Is Landlord Insurance Required in Massachusetts?
Landlord insurance isn’t required by law in Massachusetts. However, if you have a mortgage on your rental property, your lender will require you to carry insurance on it. An insurance policy protects their investment in your home.
Due to the thousands or tens of thousands of dollars a lender puts down on your property when you get a mortgage, they want to protect their investment in case something goes wrong. They achieve this protection with an insurance policy.
Since homeowners insurance won’t sufficiently cover tenant-occupied properties, you’d need landlord insurance to cover your rental. You’ll need to maintain a landlord insurance plan for the life of your mortgage, or else your lender can force-place insurance on you.
Due to the protection landlord coverage provides, keeping a policy is recommended even if you paid off your mortgage or never had one in the first place. Coverage can save you thousands out of pocket during just one claim.
How to Get Massachusetts Rental Property Insurance Quotes
It’s always a good idea to shop around and compare quotes from multiple insurers to find the cheapest landlord insurance in Massachusetts. At Clovered, we want to help you find the best policy for your needs at the best price.
You can use our online quoting platform to compare landlord insurance quotes in Massachusetts from a few of the top carriers simultaneously. As an independent insurance agency, we partner with some of the top landlord insurance companies in the state.
You've worked hard to buy your rental property. Protect it with a custom policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.