Worried about paying high premiums for your property? Here are some tips on how to avoid unnecessary expense as you purchase home insurance for landlords.
Avoid making claims
Avoid making a claim unless it is an absolute catastrophe. You need to get used to the idea of paying for minor damage out of pocket even if you have landlords insurance. Insurance companies are known to increase premiums, especially if someone has a history of claims. Some companies might even drop your cover entirely if they think you made too many claims.
Shop around
It never hurts to shop around when you have to purchase anything. It definitely hurts if you go with the first option you find when you need to purchase a landlord insurance policy. So be sure to scout multiple insurance companies, read customer reviews and get quotes to compare them, before you decide on a provider.
Ask about discounts
Do not feel shy about asking about discounts. You could be eligible for a no-claims discount if you follow our first advice to the letter. Other common discounts are discounts for installing safety features in the building such as sprinklers in rooms and hallways, new policy discounts and renovation discounts.
Calculate rebuild value accurately
Many people think that insurance premiums are based on the current value of property. It is in fact based on the cost of rebuilding your property from scratch, which means that you shouldn’t include the value of land in your estimate. If you overestimate the rebuild value, you will find yourself needlessly paying high premiums. On the other hand, if you the calculations you made turn out to be lower than the actual value, you will have problems when you need to make a claim.
Rent out unfurnished property
You don’t have to get contents insurance if you only rent out unfurnished property. This will lower your premium. If you choose to do this, remember to encourage your tenants to purchase personal belongings insurance.
Choose a higher deductible
A higher deductible for your landlord insurance policy means that you are willing to cover some of the cost out of your own pocket in case you have to make a claim. This lowers your premium. This is smart especially if you do not see yourself making a claim down the line.
Pick one company
Insurance companies love policy bundles. If possible, purchase your health insurance, life insurance, property insurance, auto insurance and homeowner insurance from a single company. Don’t do this, however, without being sure that the company’s rates are reasonable.
Remember to do your homework and ask the right questions when you are about to purchase a policy.
