Before you renew your current real estate investment insurance policy, consider these tips to reduce your rates.
Premiums for real estate investment insurance are skyrocketing all across the country. Before you renew your existing coverage, take these tips into consideration. Could you be paying too much for your insurance?
1. Shop Around and Compare Quotes
It might feel like a hassle to shop around for insurance quotes, but with real estate investment insurance, the savings can really add up. We recommend securing quotes from several different insurance companies to compare coverage options and prices.
2. Assess Coverage Needs
If you’ve made improvements to your property, had any claims, acquired more property, or had significant changes in tenancy, it’s definitely time to evaluate your coverage to make sure that it matches the property’s value and specific risks.
At the minimum, you should assess your coverage annually.
We’ve also seen a lot of market fluctuation in the last few years, which can affect your coverage needs.
3. Consider Deductibles
One way to save on your premiums is to opt for a higher deductible. If you go this route, you want to make sure that the deductible you sign up for is an amount you can afford to pay out-of-pocket in case of a claim.
4. Review and Improve Property Security
Regular maintenance and risk reduction, like adding alarm systems, fire extinguishers, and secure locks can reduce the risk of claims and potentially lower premiums.
5. Evaluate Location Risks
As you make changes to your real estate portfolio, be sure to investigate the property’s location for natural risks. While we typically don’t have to worry about earthquakes or hurricanes, there are many areas that may be flood-prone in Ohio, which may require additional coverage and increase costs.
Also take into consideration the crime rates in the area. Properties in low-crime areas may have lower insurance premiums.
6. Understand Policy Exclusions
How well have you read your current policy, and just how protected are you? Carefully review what is and isn’t covered to avoid surprises and ensure you’re not overpaying for unnecessary coverage.
TC Parker and Associates can help you discern your current policy and point out places that you could be saving.
7. Consider a Master Policy
This is our area of specialty! For investors with multiple properties, a master policy is frequently more cost-effective than individual policies for each property. It’s also far easier to manage.
8. Evaluate Coverage Options
There are two ways to insure your properties: actual cash value and replacement cost. The latter typically offers better protection but may be more expensive.
9. Risk Management Strategies
You can put in some legwork to reduce your risks without contacting any new insurance companies. Through a thorough screening process, you can reduce the risk of property damage and liability claims. And make sure that your lease agreements clearly outline tenant responsibilities. This can mitigate the risk of claims and lower your overall expenses.
If you’re ready to explore how a master policy with TC Parker and Associates can save you money, Talk to an Agent. We’ll be happy to provide you with a quote before you renew your current policy.
