How to Save Money on Landlord Insurance

How to Save Money on Landlord Insurance

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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.



6 Things to Look For in a Property Manager

6 Things to Look For in a Property Manager

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1. Hire a licensed property management company

Sounds like a simple thing but a lot of people don’t check to see if the person they want to hire have a license or not. The first thing that they look for is whether or not the property manager is affordable and their personality. Sometimes it is a good thing to pay a little extra in order to have a licensed property manager, because they will know how to take care of all the paperwork as well as any unforeseen complications.

2. Look at the managers portfolio

Take a look at some of their current managed properties, ask for the addresses of a few locations, which are currently being managed by them. After reviewing the conditions of the property, which they are managing you can start to eliminate some of those candidates.

3. Is the fee reasonable?

There is no such thing as a standard management fee, it all depends on your market area, however you can expect to see fee ranging from 8-10% of the monthly rent amount as the management fee.

4. Will your property be inspected?

 Make sure that your investment is being taken care of properly by being check inside and out. If you have a long-term tenant it is still important to check on the condition of the home, that way you can head off any major problems that the tenant hasn’t reported or noticed.

5. Interview your candidate

You should review all of your candidates and ask questions like how many times have you evicted someone on their current property. A high rate eviction can tell you that they aren’t screening the rental applications well enough.  Renters should be expected to pass the basic credit check and have a satisfactory reference from the previous landlord.

6. Review the contract

Have a well written agreement that includes a termination clause. If you are unhappy with the property manager you should a pre-defined method for ending that relationship. Perhaps consider providing a 30 day written notice with the company or person about your concerns and dissatisfaction.

The most important thing to remember is that you are satisfied with your property manager and that they are easily accessible.