Blog & Advice

Are You Overpaying for Landlord Insurance? Time to Do a Cost Comparison

A quality landlord insurance policy is absolutely essential for any rental property owner. But if you haven’t recently compared your rate to those currently available, you may be paying too much for your insurance. The problem is, it can be hard to know whether you’re overpaying or not unless you know how to compare insurance policies as the pros do. By learning more about landlord insurance policies and the most efficient way to choose one, you can ensure that you are getting the coverage you need at the best available price.

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 either over the phone, online or sometimes in person. An independent insurance broker may also have a local office, but 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, things that the carriers themselves may or may not tell you.

Once you’ve chosen your research method, you can start collecting and comparing insurance policy quotes. The first and most obvious thing to compare is the price. However, it’s important to note that the lowest-priced policy may not be the best value for your money. This is because cheaper prices may mean less coverage, poor customer service, or as is often the case, is used as a lure to get your business before dramatically increasing your rate a few months later. Before comparing policies, make sure that each one has equal amounts of coverage, and that the coverage described meets both your needs and any state or local requirements.

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 before deciding which way to go. A reputable carrier should offer 24/7 claims reporting and access to live support staff. In the event of an accident or disaster, you need to know that your insurance carrier will be responsive and take immediate action to help you pay expenses and make repairs as efficiently as possible. The size, stability, and age of the company should also be included in your comparison, as these factors can be clear indicators of how strong and reliable they will be as a service provider.

With a good understanding of how to choose a landlord insurance policy, the next big question is when. As a business expense, rental property insurance should be shopped annually for both quality and price. If you haven’t done a detailed cost comparison on your landlord insurance policy in a while, you might be surprised at how the options have changed. 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.

When questions about landlord insurance policies arise, the professionals at Real Property Management can help. We can connect our property investors with insurance professionals who offer the best quality policies at competitive rates. By using industry best practices, we can help make insuring and protecting quality long-term rental homes a streamlined, profitable endeavor.