Memo: To All Landlords, RE: Homeowner’s Insurance

Memo: To All Landlords, RE: Homeowner’s Insurance

This memo was issued to all property management clients in March 2020.  I have published it here publicly for all property owners to use as a reference and to recall anything, if needed!

To: All Landlords

From: Shannon McCullough, Property Manager

Date: March 10, 2020 (publishing in blog on 9/25/2020 for reference)

RE: Homeowners Insurance

After recently suffering a loss at an uninsured condo I am encouraging everyone to double check their policies are effective and will pay out in the event of a loss.  I called a local insurance agent and asked him the most important items for landlords to be reviewing on their current policies.

Single Family and Multi-Family Owners:

  • Do you have a Dwelling Fire Policy (aka “landlord policy”) not a homeowners policy?  Ask your agent! It is the difference between whether or not your policy will pay out if a tenant is living there.
  • Liability coverage at a minimum of $500,000 (the difference between the minimum allowable liability and $500k in liability coverage is negligible on the annual premium)
  • Lower or eliminate contents coverage if you don’t have anything in there.  If you have washers, dryers, or other contents, lower it to save money to cover your contents accordingly.
  • Ask if you’re getting a bundle rate.  Using the same insurance company for all your properties, automobiles, etc. can usually get you a hefty discount.

Condo Owners:

  • You will have a regular condo policy, however it must have the following endorsement: “rented out to others”
    • ALL CONDO OWNERS SHOULD HAVE sump-pump water backup coverage on their policy (90% of losses are plumbing-related).  If you don’t have this then the policy will not pay out.
    • Provide your insurance agent with a copy of the HOA master policy and bylaws to your insurance agent, they will advise you on the exact level of coverage you need.


What should you do now? Call your current insurance agent or insurance company.  Ask them all these questions.  If you live out of state or are thinking you want to shop around for a better deal I personally use Jake Chorney with Ellis Insurance in Natick, MA.  He advised me of all the above items to look for on policies, and has advised me personally on how to reduce coverage and save money on my own policies.

Jacob Chorney | Sr. Account Manager, Ellis Insurance Agency, Inc.

Email: | Phone: 508.653.1600 x308


Shannon McCullough

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