How to Buy Landlord Property Insurance like a Pro

How to Buy Landlord Property Insurance like a Pro

You can never be sure what’s around the corner, but landlord property insurance assures your assets are protected. Landlord property insurance policies cover the costs of damage sustained by external sources, like storms, fire, and vandalism. Some policies also cover earthquake and flood damage. The peace of mind is invaluable, but purchasing this insurance can be confusing. Clear the chaos by following these tips when buying property insurance to help you make an informed purchase.

Find an Insurance Agent You Can Trust

A trustworthy insurance agent will help you through the insurance buying process. You can get a feel for insurance agents by browsing their websites and speaking to customer service representatives. It’s also wise to seek the opinions of others. Ask your local Real Estate Investors Association and other landlords you know about their experiences. Also, don’t be afraid to look outside the major carriers and check out smaller state-based providers, as these may have a more hands-on approach and offer packages tailored to the conditions in your local area.

Take time to cultivate a good relationship with your insurance agent. Meeting with them from time to time to discuss your policy will ensure you have the best coverage for your situation, and you’re paying the lowest rate for it.

Take a High Deductible

Agreeing to a high deductible may seem scary, but it actually makes a lot of financial sense. You don’t want to make insurance claims on minor damages and repairs, as every claim you make is like a black mark against you. The greater the number of claims you make, the higher your premiums will be, so you’ll only claim if there’s a real catastrophe.

The higher your deductible, the lower your insurance quote will be. Given that it’s unlikely you’ll ever want to claim, it’s worth taking the risk to save money on your policy.

Double Insure for Extra Protection

Property insurance isn’t the only coverage available to landlords. Liability insurance can complement a property insurance policy. It covers any legal and medical bills that may occur when a tenant sues a landlord for damages. These might include injuries caused by landlord neglect, discrimination, invasion of privacy, and wrongful eviction.

Many insurance firms are happy to offer discounts to landlords with multiple policies. Bundle property insurance and liability insurance together to really save.

Keep Your Rental Property Well Maintained

Don’t just assume that if you have property insurance you can take a hands-off approach to your rental house. You will breach the conditions of your landlord’s property insurance policy if you do not maintain your home. While the safety of your tenants should be a key motivator for keeping your property ship-shape, you also never know when an insurance inspector might be checking to see whether you’re meeting your obligations.

Purchasing landlord property insurance doesn’t need to be scary. Remember these simple tips and you’ll be able to buy landlord property insurance like a pro.

Espana Gomez is an author of this blog. Recently she works as an interior design assistant in her town. She loves daydreaming about beautiful homes and interior decor.