What are some ways you have managed to lower your insurance bill?

Question

Outside of getting less coverage, what are some ways you have found that you can lower your insurance bill for investment properties?

I'll start - every insurance company I've talked to likes that we have installed new security systems on site, which usually gets us a lower rate.

Hopefully these tips help any investor who reads the comments save money!

Drew Sygit · Answer

Compare Replacement Cost policies with Specific Amount policies.

Kyle Vogeler · Answer

I haven't done this yet and will have to look into it!

Richard F. · Answer

Perform thorough vacancy preps and annual inspections to check any possible leak sources; install no-burst flex lines for plumbing fixture connections; install appropriate fire extinquishers and ensure they are tested and tagged annually, along with any multi-fam building systems such as fire alarms or fire hose racks; ensure all windows are functional and not barred to prevent emergency exit; perform annual roof inspections and maintenance, clear debris clean repair gutters to drain properly; walk the exterior and interior checking for hazards to eliminate, especially trip hazards; concrete work should not have offsets of more than 3/4", repair as needed; stairs and stair railings should be very secure, with consistent and proper heights and treads; non-slip adhesive treads for wooden exterior stairs; replace any window or door plate glass with safety glass; ensure electrical panel is properly wired and not overloaded, and proper GFCI's are installed where necessary.

Short version, take preventative actions to damages and accidents from occurring. No claims equals lower premiums. Also, be sure you have the right type of policies. Landlord Policies are different from Owner Policies. Discuss different scenarios with your Ins Agent to ensure you are properly covered for realistic incidents such as sewer back ups, power outages, trees falling through your roof...when it is raining heavily. You might be surprised. Also, very important if you have a Condo/HOA property, your HO6 must mesh properly with the Master Policy of the project, in terms of deductibles. Many of these type project Masters now have deductibles of $25,000 which will come out of your pocket if your unit originates the source of the loss.

Janice Carter · Answer

Shop aggressively across multiple carriers each renewal as rates can vary a lot. Also consider increasing your deductible to the maximum you are comfortable with to lower your premium.

Kyle Vogeler · Answer

I completely agree. I have my "go to" insurance broker, but I have learned that I still need to obtain at least 3 quotes outside of their firm. They are typically the lowest option, but I recently switched insurance on my one apartment buildings to another insurance agent and was able to save $7,000

What are some ways you have managed to lower your insurance bill?

What are some ways you have managed to lower your insurance bill?

Most Popular Reply

6 Replies