Investing in rental properties can pay off financially if you manage your portfolio wisely. Whether you work with a property management company or manage your properties on your own, you will want to pay close attention to your rental property insurance. Understanding your cost and coverage will help you make the most of your coverage while keeping your premiums affordable.
Rental Property Insurance Costs
Insuring rental properties is much different to insure than a home. It costs approximately 25% more to purchase rental property insurance than a standard homeowners’ policy. If a storm damages a rental, you must file a claim for loss of income. It’s also important to remember that rentals, depending on the size, may have multiple people living in one property. The risks for each type of property are unique.
Different Factors That Affect Rental Property Insurance Costs
Several factors directly impact your rental insurance costs, including the age, condition, and type of building materials. The location, proximity to water, and the number of units will also play a role. Installing a security and fire suppression system will help lower your premiums, while fireplaces and pools may increase your costs.
Reducing Rental Property Insurance Costs
Keeping your rental property insurance premiums low is important if you want to protect your bottom line. Install a fire suppression system and ensure fire extinguishers and smoke detectors are always in good working order. Put in a reputable security system and pay the extra for third-party monitoring. This provides 24-hour coverage, you can count. You can also lower your costs by avoiding short-term rentals. Long-term tenants are less likely to damage your property.
The Best Rental Property Insurance Coverage
A good rental property insurance policy will protect you in many ways. Property damage and liability coverage are essential to most rental property insurance policies. They will often include legal fees in case you need to evict a tenant or collect for damages they may have caused. You will also want your policy to include loss of income coverage if one or more of your rentals need to be repaired.
Tips on Buying Rental Property Insurance
You must shop around. Get several quotes from different companies. Ask about billing and what grace period they offer. Find out what their process is if you buy additional properties. It’s also a good idea to ask about their claims process. Get to know the agents you will be working with. Make sure you have all your questions answered before buying a policy.
Contact Scautub Agency to Buy Rental Property Insurance!
When looking for the best rental property insurance, you must have the best agents. Contact us at Scautub Agency today and talk to one of our experienced agents. We work to build positive working relationships with all of our clients. Rental properties require special policies that protect your investment and, at the same time, give you the peace of mind you deserve!