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.

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.

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.

Insurance for landlords in Massachusetts covers several types of rental properties in several ways. You can get landlord insurance for:

Depending on your chosen plan, landlord insurance can cover property damage, landlord liability, and loss of rental income.

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 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-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-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.

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.

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.

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. 

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.

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:

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.

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 can also chat with one of our licensed agents at 833-255-4117 or email us at agent@clovered.com with questions about insurance for landlords in Massachusetts.