Massachusetts is a busy city, and many people live on rent here. Hence, letting out one’s apartment or commercial property on rent is a return on investment for any property owner in the city. Although landlords are not legally obligated to get landlord insurance in Massachusetts, it is still considered that you get one, especially if you also have plans to take a loan against the property someday. Massachusetts is a landlord-friendly state, but before you get landlord insurance here, there are some questions that you need to ask.
What Premium Should You Pay for the Policy?
The premium of a landlord insurance policy in Massachusetts would depend on certain factors like in which part of the city is the property located, the property’s age, what is the construction of the building like and does it meet all the safety and construction laws of Massachusetts.
It also depends on the number of units, whether any previous insurance claims have been filed against the policy, and what kind of coverage you want as the landowner. Based on these factors, you will receive a quote from the landlord insurance Massachusetts company, which you have to decide is feasible for you or not.
What Kind Of Damages Will The Insurance Policy Cover?
In Massachusetts, some anti-social activities have been reported in the past. So make sure that the insurance policy covers theft and vandalism. It should also provide coverage against fire, storm, and other natural hazards.
Most importantly, it should cover tenant damage because short term tenants often use the property recklessly and leave without accountability. Try to opt for comprehensive insurance that will cover all the replacement costs for the entire rental property, just if there is a total property loss.
However, every insurance plan has some limits regarding property damage, so be sure to find out what they are in case of the policy you plan to buy.
What Will The Insurance Protect You Against?
The landlord insurance Massachusetts policy will cover the loss of rent if the tenant becomes a defaulter. In Massachusetts, the state law is that a tenant gets 30 days to pay before the landlord can send him a notice and 14 days to pay rent before the landlord can file for eviction. The landlord is covered for the time the tenant has not paid the rent and is equally reimbursed.
With a landlord insurance policy in Massachusetts, you can get covered against unlawful claims and lawsuits. Some tenants or visitors might get injured on the property and blame it on the landlord, even though it is not the landlord’s fault.
Liability insurance will protect you by covering the costs by either paying the tenant or by covering the costs of the legal procedure.
In Massachusetts, the weather can fluctuate enormously over a short period due to its humid continental climate. It has a wetter and colder winter season with severe winter storms and thunderstorms rocking the city at times. If your property is damaged due to some natural disaster or is rendered uninhabitable due to some other reason, you will be reimbursed for the loss of income you would have had from the rent.
Additional Points to Keep in Mind
You can also opt for some additional riders like landlord content insurance, covering your items on the property like the furniture, appliance, and furnishings.
Under Massachusetts law, the landlord presents the tenant with a checklist about the dos and don’ts that the tenant is required to follow. The rental agreement should also disclose any specific or unique information about the property, which might have direct or indirect consequences about the living conditions.
However, even after following all the protocols, if any issues arise with the property with regards to tenancy, then the landlord insurance in Massachusetts will greatly help you in several aspects.