Owning a multi-family home in the Commonwealth of Massachusetts can certainly be a great investment as long as you have the proper three Decker apartment building insurance in place. Some people live in one unit and rent out the other two units in order to offset the cost of the mortgage. In some cases the rent pays for the entire mortgage each month and the owner ends up living for free so to speak. In other cases, real estate investors buy multi-family homes to rent out all of the units and make a profit after the mortgage and other monthly expenses are paid off.

So why do you actually need three Decker apartment building insurance? First and foremost, it is required by the mortgage company. Even if you bought your property in cash or are planning to pay for the property in cash, which is incredibly rare these days, the three Decker apartment building insurance is 100% for your protection. So how does it actually protect you as the property owner? The policy is designed to cover a great deal of things. For example, if the real estate is damaged or destroyed by fire the three Decker apartment building insurance covers the repairs or the replacement of the property.

That being said, you will most likely have a deductible due per each incident. For example, if a fire causes $10,000 of damage, and your deductible is $1,000, you will receive $9,000 for the damages. However, if the property burns to the ground is worth $500,000, the three Decker apartment building insurance will cover the $500,000 needed to rebuild minus the deductible. Your property insurance policy also covers other natural disasters such as damage caused by excessive windstorms and snowstorms.

However, the vast majority of policies do not cover floods, so you may want to take out an additional flood insurance policy just in case. If the property is listed in a flood zone, you absolutely want to apply for flood insurance. In addition to natural disasters, your three Decker apartment building insurance policy also covers your liability as the property owner if anyone renting from you or visiting the property is injured at the property due to something that is deemed as your fault. For example, if a visitor trips on a loose stone in the walkway and ends up being injured because of it, they can sue you for any damages that it causes.

Damages include doctor’s visits, hospital bills, time missed from work, and even mental anguish. That can add up quickly, so you need insurance to cover that. You certainly do not want to pay those damages out of pocket.

If you own and or manage real estate in the Commonwealth of Massachusetts you need to ensure that you have the proper property owners insurance policy in place. Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options.

We look forward to helping you with all of your personal and or business related insurance needs now and in the future.