How to Lower Your Rental Property Insurance Premium

Investing in rental properties can be very lucrative, but the associated costs, particularly insurance premiums, can rise quickly. It’s essential to discover methods to cut these expenses without compromising on coverage to ensure you maximize your investment returns.

Ways to Lower Rental Property Insurance Costs

Here are some effective strategies to help lower your rental property insurance premium:

• Shop around and compare quotes. Coverage and related premiums can differ significantly between insurers. It’s crucial to get quotes from multiple insurers to compare your options. Working with an independent insurance agent can also help you find the best coverage tailored to your specific needs.

• Consider bundling your policies. If you have various insurance needs, such as homeowners or auto coverage, you may be able to combine them with your rental property insurance. Many insurers provide discounts for bundled policies, resulting in substantial savings.

• Raise your deductible. By doing so, you can lower your premium but still manage the higher out-of-pocket expenses if you need to make a claim. This strategy can decrease your monthly insurance costs while preserving essential coverage.

• Maintain a good claims history. Insurers typically consider your claims history when determining premiums. Avoiding making small claims and maintaining a claims-free history can help you be viewed as a lower risk, which may keep your premiums down.

• Implement safety measures. Installing safety features such as fire alarms, security systems and storm shutters can reduce the risk of damage to your property. Many insurers offer discounts for rental properties with these features in place.

• Keep your property well-maintained. This can help mitigate potential issues that might lead to claims. In other words, conducting regular inspections and making timely repairs can prevent expensive property damage and claims, which, in turn, may help reduce your premiums.

• Consider long-term leases. Tenants with long-term leases are less likely to cause frequent turnover and potential damage. As such, rental properties with stable, long-term tenants may qualify for lower premiums from insurers.

Learn More

Contact Stillman Insurance Group to discuss your rental property insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.