Property Insurance Tips to Help Landlords Save Money

Obtaining property insurance can start to get tricky once you acquire multiple properties.

If you've only purchased one or two rental properties, the same agent who provides your personal homeowners or automobile policy will likely provide reasonably priced insurance for your investment properties.

But once you've purchased your fourth or fifth property, insurance companies start to see you as a risk, and even though you may have never filed a claim, your rates can start to increase and your insurance company might even drop you.

There’s no easy fix to keep your insurance costs down, but here are a few pointers that may help.

Never Make a Claim

Unless you've had a total loss or some kind of major catastrophe, it’s going to be much less expensive in the long run to pay out-of-pocket for minor repairs or damages than to file an insurance claim.

Every claim you make on any of your properties is a mark against you, and will cost you in the form of increased insurance rates or the cancellation of your policy.

Having homeowners insurance claims on your record is almost like having bad credit, because claims stay with you for years and negatively affect your ability to keep insurance rates low.

Find a Trustworthy Agent

Shopping around for an insurance agent can be a hassle, but it’s worth the investment of time and energy to find an agent who understands your business.

Start by checking with the National Association of Real Estate Investment Advisors to find a local advisor who can point you in the correct direction.

Other local landlords may have good recommendations for trustworthy insurance agents.

You can also try to find a broker who can shop different companies and find the best one for you.

Never Call Your Insurance Company

Even if you’re not filing a claim and are just calling to ask for information, companies keep track of all phone calls and may count them against you.

It’s always better to speak directly with your agent, who will probably be willing to discuss your issues or questions “off the record.”

Choose a High Deductible

The higher your deductible, the better your insurance rates are going to be.

Be sure to check with your lender to make sure that the company will allow a large deductible amount.

It is important to make sure that the larger deductible isn't completely out of reach, should disaster strike.

Keep Your Properties Well Maintained

Performing routine maintenance on your properties makes sound financial sense because it limits your risk of damage from things like faulty wiring, leaky pipes, and unwanted pests.

It’s also a good idea because insurance inspectors will be less likely to jack up your rates or try to cancel your policy if they find a well-maintained property on a visit.  

Maintain a Relationship with Your Agent

Property insurance is something you need to keep an eye on.

Make sure you read and understand any notices you receive, and communicate with your agent frequently to make sure everything is in order.

Building a rapport with your agent will benefit you in the event that you need his/her help.

Bundle Your Insurance

Insurance companies usually offer rate discounts if you’re willing to bundle all of your policies with them.

Consider putting your personal home, car, and investment property coverage all in one place.

Posted on Nov 25, 2014


The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More

How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More

The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More

Landlord Obligations: The Responsibilities of a Landlord

Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More

The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More

The Best Landlord Forums

Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More

The Biggest Landlord Problems and How to Fix Them

Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More

Landlord Tenant Disputes

If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More

Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More

Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More