Landlord Insurance Cambridge MA

Owning and renting property can be a great way to generate passive income. However, it can be a big investment and comes with substantial risk. First and foremost, someone else is living on your property and you cannot control everything they do. Additionally, your property could be damaged during natural disasters. To cover any unexpected expenses related to property damage or liability claims, you should purchase landlord insurance.


Who Needs Landlord Insurance?

Who Needs Landlord Insurance?

Landlord insurance, also known as dwelling policies, gives landlords financial protection when their rental property is damaged, becomes unlivable, or a person is injured on the property. Standard homeowners’ insurance has only limited – if any – coverage for rental properties as opposed to policies tailored specifically for landlords.

When you are renting out a condominium and only liable for the interior structure of the property, you do not need full landlord insurance. Instead, you will be better off with landlord condo insurance.

If you are renting out the property only for the short term, consider getting a commercial insurance policy. This can be adjusted to cover your precise needs

What Does Landlord Insurance Cover?

While each landlord's insurance policy can differ given their unique circumstances, there are three main types of policies: dwelling-fire form 1 (DP-1), dwelling-fire form 2 (DP-2), and dwelling-fire form 3 (DP-3). The higher the number, the better the coverage, which means that DP-3 offers the most comprehensive coverage. DP-1 policies offer the least coverage and are usually avoided.

In general, insurance policies cover the following:

  • Property damage – If the property is damaged by a fire, hurricane, falling tree, or other natural event listed in the policy, then any costs incurred will be covered. The policy can also be extended to cover any outbuildings, such as a shed or garage. Additionally, there is coverage for equipment dedicated to the property’s upkeep and maintenance, such as lawnmowers.
  • Liability – In the event, someone is accidentally injured on the property, liability insurance will cover the medical expenses, legal fees, and loss of income due to injury.
  • Loss of rent –If a severe event, such as a fire or hurricane, prevents you from renting out the property, then your loss of income will be covered until the property has been repaired and can be put on the market again. Included in the DP-2 and DP-3 policies.

There are some additional coverages you might want to consider:

  • Vandalism - Vandalism is not covered in a typical landlord insurance policy, but can be added as optional coverage.
  • Burglary - Similar to vandalism, the regular landlord insurance policy does not fully cover it. Your coverage might extend to broken windows and doors, but to protect stolen items, you need additional coverage..
  • Eviction costs - Generally, landlord insurance does not cover costs associated with eviction. However, eviction insurance can be purchased separately.
  • Landlord rent guarantee - If something happens to the tenant and they become unable to pay, this additional insurance gives you the guarantee that you will still get paid.

Landlord insurance excludes the following:

  • Maintenance of equipment – Any equipment kept on the property, such as lawnmowers and washing machines, are not covered for repairs and replacements that are part of regular maintenance.
  • Tenants’ belongings – Tenants are responsible for their own belongings inside the property and can get renters’ insurance to protect their belongings. Asking tenants to buy it could be a condition of your rental lease.
  • Sharing – Landlord insurance policies are designed for non-owner-occupied properties. If renting out a floor or a room at your home, then you normally only need homeowners’ insurance. However, depending on the number of rented out rooms and tenants, your premiums might increase or you might still need landlord insurance.

Coverage for the Landlord’s Items at the Property

Coverage for the Landlord’s Items at the Property

If you are renting out a fully furnished property, then you can also add landlord content insurance to the standard policy. This will cover practically everything in a property, including furniture, electronics, and fixtures.

There are two types of landlord contents insurance: standard and accidental.

Under standard coverage, you will be covered for any damage due to wear and tear. Under accidental coverage, in addition, to wear and tear, you will also be covered for theft and damages caused by a tenant.

Saving Money On Landlord Insurance

When purchasing landlord insurance, you want to select a policy that adequately covers your needs. However, that does not mean you need to choose the most expensive policy. There are several ways to reduce the cost of insurance:

Increase Deductibles

By increasing your deductibles, you will decrease your premiums. However, as with any other insurance, the out-of-pocket costs will be higher. Make sure you have enough savings to cover that.

Pay in Full

If you pay for your entire insurance policy annually rather than monthly, you can save a significant sum.

Secure the Property

If you have valuable assets inside the property, installing burglar alarms will reduce your costs. The same applies to fire alarms and sprinkler systems. The more secure or better protected your property is, the lower are the risks and insurance premiums.

Maintain the Property

In general, keeping the property in good working order and doing regular maintenance on the plumbing, heating and electrical systems will lower your premiums.

Only File for Major Claims

Since insurance companies take into account the number of claims you have made in the past to evaluate their risks accordingly, avoid filing claims when you have other options or the issues are not serious.


If you already have a car or home insurance, consider bundling all your insurance policies together from the same provider to get discounts.

Ready to find the perfect policy for your needs? Email us and our experts will get back to you soon.

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