A Practical Guide to Landlord Insurance: Protecting Your Rental Property the Right Way
- B1 Insurance Team
- Jul 10
- 3 min read
Owning rental property can be a valuable long-term investment. It provides passive income and potential appreciation. However, protecting that investment requires the right insurance coverage. Many property owners mistakenly believe their homeowners insurance is enough. Unfortunately, that can lead to denied claims and unexpected out-of-pocket expenses.
If you rent out a single-family home, a duplex, or any other residential unit, you need landlord insurance. It is also known as rental property insurance or a dwelling fire policy. This coverage is built specifically for properties that are not owner-occupied.
What does Landlord Insurance include?
A landlord policy generally includes several key components:
Dwelling Coverage
This covers physical damage to the structure caused by common risks such as fire, storms, or vandalism.
Liability Protection
This pays for legal defense and medical expenses if a tenant or visitor is injured on the property and you are found responsible.
Loss of Rental Income
If the home becomes unlivable due to a covered loss, this helps reimburse the rental income you would have earned during repairs.
You can also add other protections such as:
Coverage for unattached buildings or storage units
Equipment breakdown for appliances and HVAC
Upgrades required by new building codes
Limited coverage for furniture or personal property in furnished rentals
Why Homeowners Insurance Will Not Protect a Rental Property
Standard homeowners insurance is designed for owner-occupied homes. Once a property is rented out, your insurance company may consider it a different type of risk. If you continue using a homeowners policy, claims can be denied. You might even lose coverage altogether.
Landlord insurance reflects the reality that renting out property carries different risks. It gives you the legal and financial protection you need as a rental property owner.
Real-World Risks That Landlords Face
Even the most responsible landlords experience unexpected challenges. These can include:
Fire or water damage to the structure
Lawsuits from tenant injuries
Loss of rent during lengthy repairs
Accidental damage caused by tenants
Claims from neighbors if damage spreads beyond your property
Rental property insurance is a safety net that helps protect your finances and your property investment.
Important Coverage Options for Older or Multi-Family Properties
If you own an older home or a multi-unit rental, you may need extra layers of protection, covering liabilities like:
Sewer and water backup coverage
Ordinance or law coverage for rebuilds
Coverage that reflects replacement cost rather than depreciated value
Vacant home coverage if a property is unoccupied for a period of time
Legal liability for claims such as discrimination or eviction
B1 Insurance can help evaluate these needs based on your location, building age, and tenant profile.
Choosing the Right Insurance Partner
Many landlords are not sure who to trust for help with insurance. At B1 Insurance, we provide straightforward advice and policy comparisons across multiple carriers. We explain the details in plain language. We take time to understand your property and your goals. We make sure your coverage matches your real risk.
Our agency serves clients throughout Massachusetts, Connecticut, New Hampshire, and Maine. We are local, independent, and focused on long-term relationships. Our focus is protecting your investment, not scoring a quick transaction.
Request a Landlord Policy Review
Whether you are purchasing your first rental property or reviewing coverage on a property you have owned for years, it is a smart time to review your protection. We will provide a free consultation with no obligation to buy.
E-mail: info@beoneinsurance.com
Phone: 617-896-3548
