7 Tips for Landlords to Reduce Property Insurance Premiums

Insurance prices, like everything these days, are going through the roof. And that is contributing to the weight bearing down on rental home investors trying to stay profitable in a high-inflation economy.

But here are a few steps you can take to reduce your costs and keep your margins as high as possible:

Bundle Your Policies

Insurance companies typically discount policies if you have more than one with the same insurer. If you have your rental property, your personal reference, and your auto insurance with one company, this is one way to chop a percentage off ALL of the policies. Likewise, if you have more than one rental, having just those policies at one insurer can have the same impact.

Choose a Higher Deductible

The deductible on your insurance policy is the money you pay out of pocket in the event of an insurance claim, and are the first dollars counted toward resolution of the claim. Deductibles can be as low as $250, but common amounts are $500 or $1,000. They can thousands, if you prefer and can handle the risk. The higher the deductible, the lower your premium.

Claim-Free History

For customers who make no or infrequent insurance claims, some companies will reward them with lower rates. Fewer claims to an insurance company makes you look like a better risk. Proactive property maintenance will help you make fewer insurance claims.

Risk Mitigation

Put processes in place to deal with emergencies and you’re more likely to catch issues before they get out of hand. For instance, fire extinguishers, which must be checked annually and recharged, can be a huge save if a resident has a grease fire. Leak detectors that have audible alarms or are connected to online alerts can prevent excessive water damage.

Pay Your Bills on Time

Good credit histories keep your credit score higher, and insurance companies view people with high scores as more responsible, as better insurance risks.

Professional or Service Memberships

Check with any service clubs or memberships that you currently have. AAA or some professional associations have discount programs set up with specific companies.

Do Your Homework

Every year, your insurer will send you a notice with your renewal offer. That’s your reminder to call around and price the service. Don’t just take their first offer.

Costs are increasing on just about everything these days. In your efforts to keep costs low, make sure you do not mistakenly reduce your coverage below what is safe. Consult with an insurance professional to make sure you are fully protected.

Dream Big Property Management provides full-service property management services for single-family and multifamily properties in the Inland Empire of Southern California. For information about all of our services, contact us at 951-778-9700.

Image courtesy of ddpavumba at FreeDigitalPhotos.net