Landlord Insurance in Maine
Allen/Freeman/McDonnell Agency
Landlord Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
Landlord insurance offers specialized commercial coverages for residential real estate investors. Most policies come with multiple coverages that together provide robust protection.
Investors who have commercial or industrial policies may likewise find that a policy suits their needs well. Policies can often be adjusted for the type of property that needs coverage.
- Building Coverage
- Contents Coverage
- General Liability Coverage
What is Landlord Insurance?
Rental properties can provide substantial returns on investment, but they can also come with substantial risks. Building damage, liability lawsuits and unpaid rent are just a few of the perils that Maine landlords should prepare for. Purchasing landlord insurance can be a major step in risk-mitigation preparation.
Landlord insurance offers specialized commercial coverages for residential real estate investors. Most policies come with multiple coverages that together provide robust protection.
Who in Maine Should Have a Landlord Policy?
Most real estate investors who have residential properties located in Maine should have landlord coverages in place. This broadly applies to individual investors and businesses that have rental units.
Investors who have commercial or industrial policies may likewise find that a policy suits their needs well. Policies can often be adjusted for the type of property that needs coverage.
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Do Homeowners Need Landlord Coverages When Renting Rooms?
Homeowners who rent out one or more rooms in their house might consider the additional protections that a landlord policy offers.
Whether a home insurance policy affords sufficient protection depends on the particulars of the policy and the renting situation. If a home insurance policy doesn’t afford sufficient protections, homeowners may indeed need a landlord policy.
An insurance agent who specializes in homeowners and landlord policies can help homeowners evaluate whether they need a landlord policy for this type of situation.
Do Landlords Who Offer Short-Tern Rentals Need Landlord Coverages?
Landlords who offer short-term rentals often need a landlord policy, but there might be situations where a standard homeowners policy is adequate.
Select homeowners policies may cover infrequent short-term rentals of the insured house. Not all policies do offer coverage for a short-term rental situation, and those that do usually place strict limits on the frequency and duration of the short-term rentals.
Nonetheless, a few homeowners might find that their home insurance policy actually does cover the occasional short-term rental. This can be helpful if homeowners rent out their house for a specific annual event, or perhaps rent out a vacation home for one week to help with costs.
Landlords who have multiple short-term rentals, rentals lasting at least a few weeks, or rentals for an investment property will likely find that their situation isn’t sufficiently covered by any homeowners insurance policy. In these cases, a landlord policy is almost certainly needed.
Again, an insurance agent who knows homeowners policies and landlord policies well can assist with evaluating policy needs for short-term rentals.
What Coverages Do Landlord Policies Offer?
Landlord policies typically offer a variety of landlord property insurance protections and landlord liability insurance protections. Property insurance normally covers damage to physical assets, namely residential buildings. Landlord liability insurance normally covers lawsuits that other parties might file. Each of these categories can be broken out into more specific coverages:
- Building Coverage: Usually protects residential buildings against damage, destruction and loss
- Contents Coverage: Usually protects equipment (e.g, appliances, mowers) against damage and loss
- General Liability Coverage: Usually protects against common accidents that might lead to lawsuits
- Umbrella Coverage: Usually protects against large lawsuits that exceed general liability’s underlying limits
- Loss of Income Coverage: Usually protects against uncollected rents if a building becomes uninhabitable
- Rent Guarantee Coverage: Usually protects against uncollected rents as a result of nonpayment
- Legal Assistance Coverage: Usually protects against lawsuits other than liability ones
How Much Are Premiums for Landlord Policies?
Insurance companies consider many factors when setting premiums for landlord policies. They often consider a property’s size, location, construction, age, and number of units, as well as other factors about the property, the landlord and the policy. A policy’s landlord property insurance coverages and landlord liability insurance coverages have obvious impacts on cost.
Because insurance companies consider so many factors, premiums vary from one policy to another. The easiest way to find out how much insuring a specific policy will cost is to compare quotes with an independent insurance agent, who’s able to request quotes from different insurers.
How Can Investors With Maine Properties Get Landlord Insurance?
If you need assistance insuring investment property in Maine, contact the independent agents of Allen Freeman McDonnell Agency. Our insurance agents have helped many investors in the state protect themselves and their properties, and we’re ready to make sure you’re well protected with landlord insurance too.
