Insurance

What is a Master Policy, and How Can It Benefit Landlords and Property Managers?

Are you a landlord or property manager who controls several properties and have to take care of multiple insurance policies? Does this issue create problems in tracking your insurance renewals or filling out several applications?

If yes, you need a master policy through a reliable insurance plan. A master policy is a true definition of less is more for all policyholders, and in this article, we will explore just that in detail. So, gear up to find the benefits of this policy for property managers and landlords. 

What is a Master Policy?

Property managers, and landlords with a portfolio of properties, understand the administrative complexities that come with managing paperwork and maintenance for numerous dwellings. Every property comes with an insurance policy, and when there are too many of them, management complications rise. 

Given these operational complexities, many rental property experts believe that property managers and landlords would be far better off with a single master insurance policy than multiple ones to avoid this problem. 

A master policy is a contract that combines or consolidates multiple policies into one. So, instead of having a separate policy for every location or property you own, a master policy allows you to have them all combined into one agreement. A master policy is designed for property managers to facilitate coverage for the landlord properties in their portfolio. A master policy gives property managers administrative oversight of the insurance to ensure the policy stays current, they are properly listed as additional insured, and they have access to report and check the status of claims

The benefit of such a policy is that it unifies insurance policies to help ease the administration hassles for both property managers and landlords. Moreover, it saves a lot of saving time that otherwise may get wasted in consolidating different policies for varying locations. 

While a master policy benefits the insured individuals, it doesn't consider them a part of the overall contract. Instead, the policyholder can issue insurance certificates for all the beneficiaries to use as insurance proof. 

How Does a Landlord Master Policy Work?

A landlord master policy, as opposed to a tenant master policy, is available for people who plan to rent out the homes they own. This policy covers multiple insurance policies and offers liability and property protection coverage. The coverages are designed to save you, the landlord, from unnecessary financial losses. 

Here are some prominent features of a landlord master policy:

  • Covers various policies located in different geographical areas
  • Offers different deductibles and coverages for separate properties
  • May also include varying ownership structures
  • Comes with a single renewal date
  • Have a high insurable value in total 

Master policies come with the below coverages: 

  • $1 million liability for liability
  • Fire, Lightning, and Smoke
  • Windstorm, Hurricane, and Hail* (*May be subject to limitations or exclusions in certain areas)
  • Vandalism and Malicious mischief

Benefits for Landlords

The above features speak for themselves. A master policy is a great relief for real estate investors who own multiple properties but don't have the time, money, or resources to handle their insurance policies correctly. 

In that case, a master policy emerges as much-needed relief. Below are some advantages that landlords like you can reap from a master policy. 

Offers Flexibility

There are many ways in which a master policy adds flexibility in handling new and older properties. For instance, it allows the coverage for more than one property with various uses. Besides, it easily helps cover properties that might be located in the most far-flung areas. 

In addition, a master policy designed for landlords is pretty helpful when it comes to providing coverages. It can conveniently feature varying coverage or deductible limits according to the nature of the original insurance policies. 

If you are an active landlord who loves owning or removing the property from your portfolio now and then, a master policy can prove relatively hassle-free. It allows easy removal or addition of a property whenever you make a sale or a purchase. Moreover, it also accommodates properties with different construction types quite conveniently. 

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    One Renewal Date

    If you are a landlord, you would know that this benefit does feel like a breath of fresh air. This is because with so many insurance policies having different renewal dates, it becomes hard to keep track. 

    However, a master policy comes with a single renewal date, regardless of the number of properties it covers. This reduces calendar clutter that often develops with multiple staggered insurance policies. 

    Master Policy Saves Money

    Whenever a landlord purchases a property, they have to acquire an insurance policy with it. And this means that the investor has to pay some proportion of the insured value. 

    This amount can add up to a massive number with separate insurance policies. However, when all the policies are consolidated into one, the amount spent on insured value decreases significantly. As a result, the landlord makes incredible savings. 

    Benefits for Property Managers

    A property manager is a person who looks after the maintenance requests of property and, at the same time, is also responsible for collecting rents for the properties they manage. They also have to fill in vacant buildings and design a budget plan for a property owned by a landlord. 

    So, how does a master policy benefit a property manager? For starters, this policy saves the time and energy property managers spend in handling the entire billing procedure. It becomes pretty simple for a manager to make all insurance-related payments on time with everything mentioned on a single contract. 

    Further, property managers find it easy to unify coverage for different properties under their control with a well-curated consolidated contract. With a single list featuring all properties, administration efforts reduce to a minimum, resulting in better management. 

    Investors are also often looking for property managers to take administrative tasks off of their plate, so as many services as a property managers provides - the better. Landlord insurance with a master policy is an easy item for property managers to offer investors. Not only does this alleviate an administrative burden for investors, but also ensures property managers have management insight into the policy and the right coverage for the portfolio under their management.

    Final Takeaway

    If you are tired of handling multiple insurance policies for the properties you own or manage, know that there is a way out, and that is a master policy. Designed to have a single renewal date, this contract consolidates various policies into one and works best for people who have many buildings and houses under their ownership or control. 

    One of the best benefits of a master policy is that it offers excellent flexibility. It is pretty easy to add or remove a property from it and can cover different deductibles and coverages. It is safe to say that a master policy is a great relief for active investors aiming to increase their property portfolio now and then. 

    State law requires anyone discussing insurance coverage to hold an active insurance license. If your landlord has questions about insurance coverage under the policy, Steadily has licensed agents available to discuss coverage at any time. Ready to take next steps? Contact partners@steadily.com to set up your master policy today. 

    Table of Contents

    What is a Master Policy?

    How Does a Landlord Master Policy Work?

    Benefits for Landlords

    Offers Flexibility

    One Renewal Date

    Master Policy Saves Money

    Benefits for Property Managers

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