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Property Management Tip Rental Property Insurance Cost Reduction
Property Managers, Landlords and Property Management Companies can save hundreds of dollars insurance costs as the prices for insurance varies depending upon the company.
Consider the following 9 tips when buying real estate property insurance.
1. Shop Around – Check with your apartment association, friends or online quote services. Get quotes and ask the insurers what they would do to lower your costs/
2. Raise Your Deductible – The higher your deductible the more money you save on premiums. If you can afford to raise your deductible to $1000 you may save as much as 25 percent in premiums
3. Don’t confuse what you paid for the real estate property with rebuilding costs – The land under the property is not at risk for theft, windstorm, fire and other perils covered under insurance. Do not include the value of land to determine how much of the property value should be covered.
4. Make your property more disaster resistant – You can steps like adding storm shutters, reinforcing the roof or retrofitting property to withstand earthquake.
5. Improve the property security – Check with your insurer to see what steps you can take to improve the property security and reduce your insurance premiums.
6. Maintain Good Credit – Some insurers check the credit score to determine insurance premiums and so make sure that your credit record is accurate
7. Stay with the same insurer – Long term policy holders receive special discounts but do compare your premiums with prices of policies from other companies at least once a year.
8. Review limits of policy and coverage once a year – Make sure you are not paying for any extra coverage. For example, one company added credit protection coverage in landlord’s policy which may not be needed by all landlords. So do review what you are being charged for once a year.
9. Encourage your tenants to carry tenant insurance also known as renter’s insurance and reduce your headache after a disaster. Read post on renter insurance aka tenant insurance and download brochure.
Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the real estate property you are thinking of buying. These reports contain the insurance claim history of the property and can help you judge some of the problems the house may have.
Remember that flood insurance and earthquake damage are not covered by a policy. If you buy a real estate property in a flood-prone area, you’ll have to pay for a flood insurance policy that costs an average of $400 a year. The Federal Emergency Management Agency provides useful information on flood insurance on its Web site at FloodSmart.gov. A separate earthquake policy is available from most insurance companies. The cost of the coverage will depend on the likelihood of earthquakes in your area. In California the California Earthquake Authority (www.earthquakeauthority.com) provides this coverage.
Download this brochure about steps you can take to reduce your insurance costs by CLICKING HERE
This blog post is brought to you by SimplifyEm Pay Rent Online and Property Management Software
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. 9 Tips for Property Managers, Landlords to Reduce Insurance Costs is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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I am also a great fan of this subject and I love seeing some new posts in this niche! Thank you
Great post, I love this blog.
Are landlords responsible to make their rental property buildings safe for tenants???
I meant are they responsible for retrofitting,etc. rentals for earthquake proofing. DO tenants have ANY rights????? I ahve asked my landlord and they have admitted they have not retrofitted. Building made of non-ductle concrete and no rebar……