Keeping up with your property’s insurance is one of the most painful parts of being a landlord but it is one of your basic responsibilities. As you gather up additional rental units, your insurance terms may change, you can lose coverage, and you must deal with rising costs. Save money on your rental property insurance by following some of these helpful tips.
One reliable way to keep your insurance rates stable is to avoid filing claims as much as you can. Each claim you file will stay in your record. Eventually, after reaching a certain limit or number of claims, your insurance provider will either increase your rates or drop you. Save your insurance claims only in case of expensive emergencies and catastrophes. In cases of minor repairs or damage, you should consider absorbing the damage and investing in repairs instead. Generally, try to handle the repair of anything that is under $10,000.
Your landlord insurance covers only certain conditions and situations, such as injuries, water damage, falling trees, fire, and other natural incidents. However, your insurance will not cover the tenant’s personal property. Encourage your tenants to purchase rental insurance that will cover their belongings. You can even include it as a requirement in your lease agreement. This way, everyone will stay clear on what’s covered and what isn’t.
Bundle Your Policies
Keeping track of multiple insurance policies is a great annoyance, particularly if you have several companies provide these policies. Increase the efficiency in your insurance matters by bundling them all within a single company. You can place multiple types of coverage under one roof, such as personal, home, auto, landlord, and life. Insurance companies encourage policy bundles, and they may even give you a discount as an incentive.
Meet With Your Agent
An easy mistake a landlord can make is to assume that his or her insurance providers will handle all matters by themselves and require little intervention. Insurance is something you need to constantly keep up with and update. Meet with your agent from time to time and read all the notices to make sure everything is in good shape.
Shop Around for Policies
Make sure you know you’re not missing out on a good deal and compare quotes between insurers. Loyalty to a specific insurance company does not always guarantee a good deal or reasonable quotes. By shopping around for different policies and quotes, companies will know that you are a savvy customer and offer their own incentives and discounts.
The installation of safety features in your rental building not only increases the safety and wellbeing of your tenants, but it also makes a more appealing choice to your insurance company. This practice demonstrates that you are reducing the risk the company takes in having you as a client, which means you are less likely to cash in your claims. Your rates have a good chance at remaining stable or even lower. Some safety features to consider include surveillance cameras, sprinkler systems, and alarms.
Increase the efficiency and profitability of your property management by choosing Home365. Contact us to learn more about our Sensory system our preventative sensory system that is installed throughout the property to detect maintenance issues before they become major problems.