How to Save Money on Landlord Insurance
Tips for Saving Money on Landlord Insurance
If you have a tenant who pays you rent, then you need a landlord insurance in place to protect your property. With the proper insurance policy you are covered if anything should go wrong. If you are a landlord you can be held liable for any damages or injuries that occur on your rental properties. Landlord insurance will limit your chances of having to deal with any sort of mishap. Here are some tips that can help Landlords save some money on their insurance:
What the difference between Homeowner’s and Landlord Insurance
If you believe your homeowner’s insurance will cover your rental property, you are mistaken. Most landlords who turn their homes into rental property are confused with the difference between homeowner’s and landlord insurance. Homeowner insurance usually covers owners who are currently occupying their home. When your home no longer meets those requirements then its considered as a rental property. Which requires you to get a landlord insurance.
Components of a Landlord Insurance Policy
What makes up a landlord insurance, there are several components which make up a landlords insurance policy:
- Residence are covered for fire, lighting, flooding, burst pipes, and wind
- Additional structures coverage for garages and outer building
- Landlord liability insurance
Depending on your policy you may have more extensive coverage than the one listed above.
Saving Money on Landlord Insurance
Landlord insurance isn’t cheap, you can expect to pay 15% to 20% more for a landlord policy than a homeowners insurance. So how can you possibly save some money for landlord insurance policy? First research what companies offer landlord insurance after that ask whether you can receive discounts, on a fire prevention gadgets, multiple properties, or a burglar alarms. This may end up saving you a bit of money.
As a landlord you may qualify for several discounts that includes:
- New customer discounts for creating a new policy
- Multi-policy discounts for properties
- New renovations discounts or upgraded properties
Don’t be shy to ask your insurance agent how you can lower the costs of your policies. Ask about discounts for safety measures, your insurance company may offer a discount for lowering the risk on your property. Some things that you can do to lower your insurance policy:
- Install an inside sprinkler system
- Install motion-detector lights and a security system or cameras
- Install a burglar alarm that is linked to emergency services
- Installing smoke detectors in the hallway, kitchen, and bedroom for each unit
Not only ask about professional group discounts, also ask if you qualify for a discount membership.
Encourage Tenants to Purchase Rental Insurance
Landlord insurance protects you from losses due to wind and hail, water damage, falling trees, lighting, fire, and injures to your tenants and their guest. However this doesn’t cover the tenant’s household goods, it would be wise to encourage your tenant to purchase a renters policy to cover their items, and make sure that they understand the policy.
Don’t Over File Claims
There is a limit for how many claims you may file before your insurance company starts charging you more. So make your claims count there are certain situations where you would want to file a claim, for example when a person alleges they were injured on your property, water damages or mold damages to the properties. These are some of the cases that you would want to file for a claim.