Landlord Insurance Cambridge MA

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.