MA property Management: Saving Money on Landlord Insurance
MA property management is not easy if you don’t have Landlord Insurance. Last week we shared information on the difference between homeowners and Landlord Insurance. This week we share information on the difference of costs.
Do remember that Landlord insurance will cost you more than a homeowner’s policy. Landlord insurance policies can be 15-20 percent more expensive than a homeowner’s policy. It depends on the frills you want with your insurance policy. Expect to pay more if you are only in the market for short term rentals. The best way to get a good deal is to talk to the company you bought your homeowners policy from. Then compare the quote they give you with rates from other insurance companies. Another good way is to check a website which can compare quotes from everyone.
Make sure you ask all the right questions. Check and see if they are willing to give you discounts for multiple properties, alarms, etc. The good thing is that you can get discounts such as:
- Multi-policy discount for properties and vehicles
- New customer discounts for creating a new policy
- New renovation discounts for upgraded-property
There is also no harm in asking for further discounts for safety measures. If your properties are well maintained then the possibility of property damage and injuries are lower. The more secure your property is the more discounts you will get. In order to get better discounts, your properties need to have the following in place to make it less of a risk. Make sure that the property is protected against fire by installing smoke detectors in all the bedrooms, the kitchen and the hallway. If there is a good sprinkler system then it makes it all better. It also helps if the property has a proper security system such as a burglar alarm with links to emergency services, as well as security cameras and motion detector lights. If you are part of some professional group such as a union or alumni, you can get a further discount.
MA Property Management: Tenant Renters Insurance
An important point to remember is that your properties are protected from losses from water damage, wind and hail, falling trees, lightning, fire, and injury to your tenants and their guests. It does not cover your tenant’s household goods. So it’s important to remind them that the need to get a renters policy to cover themselves. One good way to save yourself is to include a clause in your insurance to let them know that they need to purchase renters insurance. In this way, there will be proof that the tenant is aware that the onus of renters insurance is on them.
Experts claim that one shouldn’t go overboard filing claims unless you really have to. The insurance company will either end up canceling your policy or charge you more for it. So don’t overrun your claim limit unless you really have to.
We hope you enjoyed “MA Property Management: Landlord Insurance Part 2″. If there are any questions, please do not hesitate to email us.