5 Ways To Obtain More Affordable Landlord Insurance

Posted on: July 1, 2011

Categories: Property Management, Things To Consider

Author: lbuen

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Landlord Insurance Image via Wikipedia

Landlord Insurance – An Expense Worth It

Every shrewd landlord knows that a landlord insurance is vital to his rental property business. Although it is not a legal requirement, it can save you from several heartaches. It may be an expense on the one hand, but on the other hand, it provides peace of mind and security against any unforeseen damage to your investment property. The trick here is to know how to obtain a substantial coverage at a more affordable rate. This way, you can protect your property investment while protecting your profitability. If you are on the verge of buying a new coverage or renew an old one, consider these three tips to help you get a more affordable policy.

How To Get A More Affordable Landlord Insurance

1. As with purchasing any other big-ticket commodity, you need to shop around to get to know features and get quotes of different landlord insurance products. Expect varied rates from different insurance providers, and the differences can be substantial. You can also conveniently do your window shopping online. Websites of various insurance companies and insurance brokerages can provide you instant quotes online. When comparing various insurance products, make certain that they are offering similar features. You do not want to compare a brand new Mercedes Benz type of insurance to an old rickety Chevy kind.

2. Buy landlord insurance through a broker instead of through an agent of a certain insurance firm. A broker can offer you a wider array of landlord insurance products from various companies from which you can match your specific needs. On the other hand, an agent can offer nothing but the products of his or her company, limiting your choices and making his or her advice more subjective. Ask other investors about insurance brokers they can recommend.

3. Ask for discounts from your insurance broker or agent. These rebates also vary from one insurance company to another. Get to know discounts which you are eligible for. For instance, an insurance carrier may be selling home, car and landlord insurance. If you purchase two or more of these policies, you could be entitled to a multi-policy discount. This will allow you to make as much as 15 percent savings on your premium.

4. Install security features on your investment property you are insuring. Dead-bolt locks, smoke detectors, burglar alarms, CCTV, and the like, are also sort of a form of ‘insurance’ in their own right since they also provide protection against a potential eventuality. They do not just help protect your investment property, they can also help bring down your insurance rate because they reduce the risk for untoward events. Also, the pull of gravity for your insurance rates would even be stronger, bringing them down further, if your property is near a fire hydrant or fire station.

5. Instead of the market value of your property, make its cost of rebuilding the basis for your premiums as they are usually lower than the appraised worth of your rental property. As a result, you can enjoy lower premiums.

Landlord insurance can be considered as an essential expense that no landlord can afford to disregard as it provides protection against untoward events. Although it can reduce your revenue, there are ways to bring down its cost.

 5 Ways To Obtain More Affordable Landlord Insurance
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