A landlord insurance policy is an absolute essential for any rental property owner. But if you haven’t compared your rate to those currently available, you may be over-paying for yours. In reality, it can be hard to know whether you’re overpaying or not, unless you know how to compare insurance policies like the pros.
By learning more about landlord insurance policies and how to choose the right one, you can ensure that you are getting the coverage you need at the best available price.
Individual insurance carrier or independent insurance broker?
When choosing a landlord insurance policy, it’s important to first decide whether you want to spend the time contacting individual insurance carriers or to have an independent insurance broker do it for you. If you choose to contact each carrier directly, you can get first-hand quotes and information over the phone, online, or in person.
An independent insurance broker may also have a local office. And they will sift through a multitude of carrier options for you and then present the ones they feel are the best for your situation. They may also have important information about the reputation and stability of different insurance carriers. Something the carriers themselves may not tell you about.
On selecting your research method, you can start collecting and comparing insurance policy quotes. The first and most obvious thing to compare is the price. However, do note that the lowest priced policy may not be the best value for your money. This is because cheaper prices may offer less coverage and poor customer service. Often carriers will lure you with low prices, before dramatically increasing your rate a few months later.
Before comparing policies, make sure that each one offers similar coverage, and that the coverage described meets your needs, and any state or local requirements.
The real value of a landlord insurance policy
The value of a landlord insurance policy goes beyond the price. For example, the quality and speed of the customer service the carrier offers are other important elements to consider. A reputable carrier should offer 24/7 claims reporting and access to live support staff.
In the event of an accident or disaster, you should know whether your insurance carrier will be responsive? Will it take immediate action to help you pay expenses and make repairs as efficiently as possible. You must also include the size, stability, and age of the company in your comparison. These factors can be indicators of how strong and reliable they will be as a service provider.
When to take out a landlord insurance policy
With a good understanding of how to choose a landlord insurance policy, the next big question is when. As a business expense, you should shop for rental property insurance annually. Without a current cost comparison on your landlord insurance policy, the changing options may surprise you!
Checking your insurance policy every year might seem like a lot of work, but it is one aspect of real estate investing that you simply cannot afford to neglect.
Ask the professionals at Real Property Management Premier for answers on taking out landlord insurance policy.
At Real Property Management Premier, we have the expertise to reduce your costs and help keep your profits high. By connecting landloards with insurance professionals who offer the best quality policies at competitive rates, you can get the best cover with the least hassle.
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