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9 Ways to Instantly Lower Landlord Insurance Premiums

Jul 11, 2023

As a landlord, protecting your investment property is crucial. However, insurance premiums can often be a significant expense in your budget.

Fortunately, there are steps you can take to lower your landlord insurance premiums without compromising on coverage. Here are some practical ways to instantly reduce your landlord insurance premiums.

Most insurance companies offer discounts for bundling multiple policies. If you have more than one rental property or if you have other insurances such as auto, life, or homeowners insurance with the same company, ask about a multi-policy or bundle discount.

Insurance companies often provide discounts for properties with enhanced security measures, which decrease the likelihood of theft or vandalism claims. Installing burglar alarms, security cameras, deadbolt locks, or smoke detectors can make your property more secure and potentially lower your insurance premium.

By choosing a higher deductible–the amount you pay out of pocket before your insurance coverage kicks in–you can often reduce your insurance premium. However, ensure you have the financial means to cover the higher deductible in case of a claim.

Ensure you’re not over-insuring your property by covering more than its actual value or insuring it for risks that are highly unlikely. Review your policy annually and adjust coverage limits as necessary.

If you have a history of no or few insurance claims, you may be eligible for a claim-free discount. Maintaining your properties and addressing issues promptly can help prevent unnecessary claims.

Risk reduction measures, such as installing fire extinguishers, upgrading electrical systems, or ensuring adequate outdoor lighting, can reduce the likelihood of claims. Insurance companies may offer discounts for these proactive steps.

A high credit score may help lower your insurance premiums, as insurers view a good credit score as an indicator of financial stability and responsible behavior. If your credit score has improved since you first took out your policy, it may be worth asking your insurance provider to recalculate your premium.

Being part of professional landlord or real estate associations can sometimes qualify you for special insurance discounts. If you’re a member of such an association, be sure to check if they have any partnerships with insurance companies.

Don’t settle for the first quote you receive. Different insurance companies may offer different rates for the same coverage. Get quotes from several insurers, and don’t hesitate to negotiate.

Remember, while lowering your premiums can save you money in the short term, it’s crucial to ensure you have adequate coverage to protect your investment in the long term. Always consider your specific circumstances and consult with an insurance professional when making changes to your policy.

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Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates’ editorial team.

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