Master Policy vs Individual Policies: Which Is Best for Rental Property Owners?
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Landlords with multiple rental properties often face a key decision: should they insure all properties under a single master policy or maintain separate individual policies for each building? This choice affects coverage, cost, administrative simplicity, and lender compliance.
Understanding the differences and benefits of each approach helps landlords protect their investments effectively and avoid costly coverage gaps.
What Is a Master Policy?
A master policy, sometimes called portfolio or blanket insurance, covers multiple rental properties under a single insurance contract. This can include:
Duplexes, triplexes, and quadplexes
Multiple buildings across different locations
Optional endorsements such as flood, earthquake, or umbrella liability
Key Benefits
Simplified administration: Single renewal and payment
Consistent coverage: Same limits and terms across all properties
Potential cost savings: Consolidating policies can reduce total premiums
What Are Individual Policies?
Individual policies provide separate coverage for each rental property, tailored to the building’s specific needs. Coverage can vary depending on:
Property type and age
Replacement cost
Liability exposure
Location risks (flood, earthquake, crime)
Key Benefits
Custom coverage per property: Ideal for unique buildings or locations
Flexibility: Adjust limits, deductibles, or endorsements individually
Easier claim management: Each property is insured independently
Master Policy vs Individual Policies: Side-by-Side Comparison
Feature | Master Policy | Individual Policies |
Billing & administration | Single renewal & payment | Multiple renewals & payments |
Coverage consistency | Same for all properties | Can vary per property |
Cost savings | Often lower | Typically higher total cost |
Flexibility | Limited customization per property | High customization |
Lender compliance | Generally accepted | Accepted per individual property |
Factors to Consider When Choosing
Number of Properties – Master policies are ideal for landlords with 3–10+ properties, while individual policies may work better for 1–2 buildings.
Property Variability – Unique construction types, ages, or high-risk areas may require separate policies.
Lender Requirements – Some lenders may require individual coverage or specific endorsements per property.
Administrative Preference – Master policies reduce paperwork; individual policies allow granular control.
Premium Optimization – Master policies often provide bulk savings, but individual policies can be optimized for high-value or high-risk properties.
Common Pitfalls to Avoid
Assuming a master policy covers all possible risks – always confirm endorsements for flood, earthquake, or loss-of-rental-income
Ignoring lender requirements per property
Failing to update coverage when adding new units or properties
Underestimating liability exposure across multiple properties
How Wexford Insurance Helps Landlords Decide
Wexford Insurance specializes in multi-unit and portfolio property coverage, helping landlords:
Evaluate whether a master policy or individual policies are best
Structure coverage to meet lender requirements
Optimize liability, dwelling, and loss-of-rent coverage
Add necessary endorsements for flood, earthquake, or umbrella coverage
Final Thoughts
Choosing between a master policy and individual policies depends on your property portfolio size, risk profile, lender requirements, and administrative preferences. Both approaches can provide adequate protection when structured correctly.
Working with an expert like Wexford Insurance ensures landlords make informed decisions, avoid coverage gaps, and maintain financial security across all rental properties.
Contact us today.
