Landlord insurance. Every responsible landlord has it. But, it can be costly. In fact, landlord insurance costs around 25% more than a comparable homeowner’s insurance policy.
Is there any way to save a little? Dig in on some ideas that might put a few dollars back in your pocket.
1. Shop Around
It can be a buyer beware world out there, and if you’re not shopping around and comparing quotes, you might be paying too much money. Policies can vary in price from insurer to insurer. So, even if you’ve been with your insurance company for years, don’t think that they will automatically provide a loyalty discount or actively work to bring the price down. You need to do some footwork as well. If you find a lower price, call your agent and see what they can do. That’s just being a smart consumer.
2. Look for Discounts
When shopping around for landlord insurance, ask if the carrier has any discounts that could apply to you. These might include:
- New customer discount – Insurance companies will sometimes sweeten the deal by offering a discount to new customers. If you are calling around, be sure to ask!
- Bundled discounts – Oftentimes, insurance companies will provide a discount for handling all of your insurance needs. By putting your auto, homeowner, life and landlord insurance under one roof, it can save you money.
- Loyalty discounts – If you’ve been with the same insurance company for a while, you might get a loyalty discount. Be sure to inquire every time your policy renews.
- Referral discounts – If you refer family and friends to your insurance carrier, you might qualify for a discount.
- Group discounts – These are discounts you can get if you belong to a certain association or profession. If you’ve served in the military, or belong to USAA, AARP or an alumni or credit union, you may be able to get a group discount.
3. Add Safety Features
When you improve the security and safety of your property, you can reduce risk. If you haven’t already, consider updating your smoke and burglar alarms, installing security cameras, motion light sensors or sprinklers. As well, upgrades like installing deadbolts can lower the risk of danger.
4. Educate Yourself
As always, it’s all about educating yourself. Landlord insurance is just another aspect to this business that you don’t want to take for granted. When you overpay for insurance, it can dig into your cash flow. Spend a little time reviewing exactly the type of coverage you need that hits that sweet spot between peace of mind coverage and profitability.
How Property Vista Helps
Just like you, your tenants need their own coverage. Property Vista also helps minimize risk with a built-in tenant insurance program. If you’re looking for property management software, check out our pricing and arrange for a demo.