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Investing in real estate is different than investing in Wall Street stocks. Stocks are speculative, and they’re also a “paper asset.” The stocks might go up and down but there isn’t much that can happen to the “financial instrument” itself (especially since they’re stored electronically instead of as stock certificates now). Real estate on the other hand, when done properly, provides steady cash flow and is a real asset… which means something could happen to your real estate.
The cash flow is nice… but you need to protect the real asset (and yourself). That’s where insurance comes in. Insurance is like a “reset button” to help you recover financially from a loss. If you invest in real estate, maybe you’re wondering, “What insurance should I have for my rental property in Massachussetts?”
Here’s a checklist of insurance that you may need:
Checklist: What Insurance Should I Have For My Rental Property In Massachussetts?
There are many possible insurance products that can benefit you but the primary ones are below. (You may choose to purchase the relevant ones separately or you might want to ask your insurance broker if they have “landlord’s insurance” since some insurance companies will package the right ones together for your convenience.)
Property Insurance. Property insurance should protect you financially from many of the events and natural disasters that may damage your property. All policies are different but you might get property insurance that covers you for fire, lightning, wind damage, etc. If you live in an area prone to a certain type of natural event (such as floods), you may need to acquire an additional “rider” for that special situation.
Liability Insurance. If a tenant or visitor injures themselves on your property, they may sue you to help pay for their medical bills and loss of employment income. Liability insurance helps to protect you from the financial burden if a lawsuit goes against you.
Tenant Insurance: Tenant insurance isn’t something you need to get for yourself but we’re mentioning it here because it’s something you should urge your tenants to get. Tenant insurance is insurance for tenants that will cover any financial loss of their belongings.
Here’s How These Insurances Work
As an example, if a fire starts, your property insurance may cover the repairs to the property, the liability insurance may cover you if the tenant chooses to sue you, and the tenant insurance will cover any damage to the tenant’s belongings.
Get The Insurance You Need
There may be other insurance to consider as well, including insurance for your business in case you are injured and unable to work, or there might be other insurance available (such as those through your credit card or bank) to cover bills if there’s a loss of income.
Insurance needs are different for every situation; we’ve covered the 3 basic insurances above to get you started but you should always talk to an insurance professional who can assess your needs based on your individual situation.
Loss of Rental Income Coverage
One type of insurance that often gets overlooked is Loss of Rental Income (also called “rental income protection”). If your property becomes uninhabitable due to a covered event like a fire or water damage, this coverage can reimburse you for the rental income you would’ve earned while repairs are made. In high-rent areas like Boston or Malden, where even a few months of vacancy can equal thousands in lost income, this type of protection can make a big difference. Learn more about this policy type at Insurance Information Institute.
Umbrella Insurance for Higher Protection
If you own multiple rental properties or simply want peace of mind, consider adding umbrella insurance. This is a secondary liability policy that kicks in after your primary insurance limits are reached. It can protect your personal and business assets in the event of a major lawsuit. For landlords in busy urban markets like Chelsea or Lynn, where legal exposure may be higher, umbrella insurance adds an extra layer of safety. NerdWallet offers a great breakdown on how umbrella policies work and what they typically cover.
Choosing the Right Coverage Starts with the Right Questions
Every rental property is different. A two-family in Everett with a shared yard has different risks than a condo in a Boston high-rise. When speaking to an insurance agent, ask about things like sewer backup, equipment breakdown, and vacancy clauses—these may or may not be included in a basic landlord policy. A good agent will walk you through what’s standard and what’s worth adding based on your specific property type and tenant profile. You can explore more about Massachusetts-specific landlord coverage at Mass.gov’s Housing and Property section.
We Help Property Owners Move Forward with Confidence
At Ephesus LLC, we’ve worked with rental property owners throughout Massachusetts, including Boston, Revere, Malden, Everett, Chelsea, and Lynn. Whether you’re dealing with costly repairs, insurance claims, or simply tired of managing tenants, we can help you explore your options. We buy properties in all conditions, no repairs, no listing, no pressure. Call us for a free, private consultation, and we’ll walk you through a solution that aligns with your goals. You deserve a clear path forward, and we’re here to guide you every step of the way.