Rental Property Insurance

7 Replies

We currently use USAA's insurance for our rental properties. I just reviewed the renewal policy and the premiums for each have gone up by a whopping 25%. At this point, I don't feel comfortable holding on to these policies anymore. I wanted to see if it is common to have an insurance policy increase this much without claim and wanted to get advice on whether or not we should be looking elsewhere. Also, any suggestions/recommendations on insurance companies with competitive rates would be greatly appreciated.

In my experience 5-10% is common, 25% is probably not a “You specific” thing. Either they want to get out of the geographical location or the type fo insurance when ty increase it that much. They’ve also done 100 studies that show people are too loyal to the companies they buy from and they rarely change rl shop around, especially after 2-3 years. 

Get a quote or two from comparable companies, I assumed allstate would be expensive when I got a quote from them but the discounts I received on my personal property more than made up for any higher prices they had on my rentals. 

@Jasmine Feeney  Was there something that happened in the area whereby there were a number of claims?  I'd call your insurance company and make sure the package you have works for you.  When mine went up, I did that and got it back down to where it had been and still have everything covered.  There were things in there that I didn't need and we changed those.

Thanks Bill, you've provided great information.  I've been with USAA for over 8 years and have all our cars and homes insuranced with them.  I will look into Geico.

Originally posted by @Theresa Harris :

@Jasmine Feeney  Was there something that happened in the area whereby there were a number of claims?  I'd call your insurance company and make sure the package you have works for you.  When mine went up, I did that and got it back down to where it had been and still have everything covered.  There were things in there that I didn't need and we changed those.

I researched and didn't find anything that would cause the insurance to increase.  Our two homes are in different states.  What I did find though were other customers complaining about their USAA car insurance going up 10% and their home insurance also up 25%.

 

Originally posted by @Jasmine Feeney:

We currently use USAA's insurance for our rental properties. I just reviewed the renewal policy and the premiums for each have gone up by a whopping 25%. At this point, I don't feel comfortable holding on to these policies anymore. I wanted to see if it is common to have an insurance policy increase this much without claim and wanted to get advice on whether or not we should be looking elsewhere. Also, any suggestions/recommendations on insurance companies with competitive rates would be greatly appreciated.

Jasmine, I would say this sounds like a rate increase across an entire region, not you specifically.

You should look take a look at options from other companies.  You may find USAA is really high, or that your premiums have been so low, even with a 25% increase you still have competitive premiums.

 

Originally posted by @Jason Bott :
Originally posted by @Jasmine Feeney:

We currently use USAA's insurance for our rental properties. I just reviewed the renewal policy and the premiums for each have gone up by a whopping 25%. At this point, I don't feel comfortable holding on to these policies anymore. I wanted to see if it is common to have an insurance policy increase this much without claim and wanted to get advice on whether or not we should be looking elsewhere. Also, any suggestions/recommendations on insurance companies with competitive rates would be greatly appreciated.

Jasmine, I would say this sounds like a rate increase across an entire region, not you specifically.

You should look take a look at options from other companies.  You may find USAA is really high, or that your premiums have been so low, even with a 25% increase you still have competitive premiums.


Thanks Jason.  I'm going to start shopping.

 

Jasmine,
I would recommend looking for an Independent Agent who has experience with the rental market. Look for one with multiple markets. You may find that they come back with different companies for different properties. The best policy may differ depending on age, condition, fire protection, dist to the coast, etc. Good luck on your search.

Also, If you have many properties you may want to look at a Commercial policy for them. Jason Bolt seems to be very knowledgeable in that area if you want to check it out.