Investment Property Insurance in New Hampshire: What Property Owners Should Know

Real estate can be an appealing investment, especially in New Hampshire, where property values and rental demand have encouraged more people to consider owning income-producing property. 

Before investing in a rental property, it helps to understand how insurance coverage can apply and change based on how the property is owned, used, and occupied. A local independent agent can review those details and explain which policy type fits the situation.

Investment property insurance

What is Investment Property Insurance?

Real estate can be a profitable asset class, but all property comes with certain risks. Investment property insurance is designed to help New Hampshire property owners protect themselves and their properties from many of the risks that they face.

Investment property insurance may fall under personal or commercial insurance depending on several factors, including the number of units rented, how the property is used, and whether it is owned by an individual or a business. An experienced insurance agent can help determine which option best fits the property and ownership structure.

Who in New Hampshire Needs an Investment Property Policy?

Individuals and businesses that invest in New Hampshire real estate should have an investment property policy. This broadly includes individuals, sole proprietors, limited liability companies, partnerships, S and C corporations. It also broadly applies to residential, multi-unit, commercial, industrial, and undeveloped real estate.

How Can Investors Get Insurance for Multiple Rental Units?

Rental properties are typically insured through landlord property insurance, which is one type of investment property policy. These policies can often be written to cover properties of different sizes,  including situations where an owner has multiple rental units.

Landlords who need insurance for multiple rental units would be wise to work closely with one insurance agent who specializes in this type of coverage. An agent familiar with landlord property insurance can help negotiate with an insurance company to help find the proper coverage and pricing.  Multiple units can provide discounted pricing with the same agent and carrier.  The agent may also identify coverage gaps when all policies are handled together.

Do Homeowners Who Provide Short-Term Rentals Need an Investment Property Policy?

Homeowners who periodically rent out their house on a short-term basis probably don't need a full-fledged investment property policy; however, not all home insurance companies allow short-term rentals.  It is important to discuss your rental plans with your agent before accepting paying guests  

An experienced agency can help homeowners review carrier options for short-term rental situations, since the right approach often depends on how often the home is rented and how the rental is structured.

If you rent out your house, it is important to be upfront with your insurance company. If the carrier was not aware of the rental use, a claim could be denied, including a fire loss or a liability claim involving a guest. In some situations, the company may also determine it would not have written the policy if it had known the property was being rented and deny all claims.

What Do Investment Property Policies Cover?

The coverages within investment property policies can vary, but it is common to find the following coverages available:

  • Liability may cover accidents occurring on the property for which you are held legally liable
  • Dwelling Coverage may cover one or more buildings on the premises
  • Other Structures may cover additional structures on the property, not attached to the dwelling (ex: detached garage, shed, barn)
  • Personal Property may cover the property you own in the investment property (example: refrigerator, stove, furniture, etc.)  
  • Loss of Income may cover loss of revenue stemming from a covered claim (fire, smoke damage, etc.)
  • Legal Defense may cover attorney fees and legal expenses if sued for a covered claim

Any personal property coverage afforded by a landlord policy is usually limited to the equipment and other items that the landlord maintains to service the property. These may include a snowblower, lawnmower, appliances and/or furniture (in furnished units).

Coverage for a tenant’s belongings usually is not included, which is one reason tenants should consider a renters insurance policy.  

How Much Does Investment Property Insurance Cost?

Premiums for investment property policies are based on several factors, including: 

  • Location of property (distance from the fire department, hydrants, ocean, etc.)
  • Replacement cost of the property
  • Type of property (multi-unit, commercial or residential, mixed-use, etc.)
  • Revenues of a property
  • Past claims history
  • Security and safety features

An independent insurance agent can request quotes from multiple insurance companies and compare options for a specific property. This can help investors understand not only the estimated premium, but also how coverage, deductibles, and exclusions may differ from one carrier to another.

How Can Investors in New Hampshire Get Investment Property Insurance?

Protecting an investment property starts with making sure the coverage matches how the property is owned, used, and rented. Whether you own one rental home, multiple units, or occasionally offer a short-term rental, the right policy can help protect you from unexpected property damage, liability concerns, and potential loss of income.

For help protecting your New Hampshire investment property, contact the independent insurance agents at HPM Insurance. Our team can review your property details, explain available coverage options, and help you find a policy that fits your situation.