A guide to building insurance for rented property

When renting out a residential or commercial property, it is important to make sure that the real estate investment is properly protected. Renting out property can be a good way to earn income for a property owner, and a good way for someone who does not want to be exposed to the real estate market to occupy a piece of property. Whether a person is the tenant or the landlord, however, it is important to have the right insurance coverage.

Renter’s insurance for a tenant is relatively cheap and easy to get. Most major insurance companies offer renter’s or tenant insurance policies. These policies cover all of the contents in a home or business, but not the structure of the building being rented. In the event of a natural disaster or an accident, the policy will pay for any belongings, such as furniture, appliances, merchandise or household goods that have been damaged or destroyed.

Renter’s insurance for a residential tenant usually costs only a couple of dollars a month, and is the only way goods can be protected in the case of a fire or even a flood. Commercial tenants usually have rates based on the dollar amount of the merchandise or equipment they have housed at the location being insured.

A landlord can also have a renter’s policy for his or her property. While most homeowners or commercial property owners will carry insurance protecting both their possessions and the structure of their building in the event of a natural disaster or accident, a different type of policy is needed when a property is being rented out. These policies will usually cost less than a full-blown homeowner’s or business owner’s insurance policy.

The main reason for this is that these policies only cover the building’s structure and any items attached directly to it. For this reason, these policies are often referred to as building insurance. A building insurance policy will repair or replace a building’s basic structural components (such as walls and a roof), decorative components (like crown moulding and paint), major appliances (like refrigerators and ovens) and internal components (such as carpeting and doors). These policies can also cover additional buildings on the property such as detached garages and sheds. For commercial property owners, the policy can cover drainage systems and parking structures.

Building insurance does not cover any items inside the building, including anything that is the property of the tenant. For this reason, it is normally suggested that tenants get their own renter’s insurance policy. Property owners who take out these policies should also be aware of how important it is to report the property’s status to an insurance company accurately. While insurance for vacant properties can be more expensive, if damage occurs to the property while there is no tenant and the vacancy was not reported to the insurance company, the damage will not be covered.


  1. Hi,
    This is where Commercial Property Insurance comes in. A typical Medfield Massachusetts Commercial Property Insurance policy will cover the property of your business that a BOP will not.

    commercial property insurance

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