5 Tips to Keep Your Real Estate Insurance Premiums Affordable
You know how fast things can get expensive if you’re in the real estate business. Repair costs, insurance premiums, and taxes can run your property bill through the roof, especially if you have several buildings or properties to keep up with. So here are five tips on keeping your real estate insurance premiums affordable so you won’t go broke trying to maintain your buildings and properties.
1) Shop Around
Shopping for a better deal is one of the easiest ways to lower your insurance premiums. Reviewing rates with other carriers may not only help you save on your current premiums, but it will also help you avoid future rate increases. But first, find out if they’re eligible for any discounts: Not all insurance companies offer the same values, so find out what deals your provider has available and how they might be able to lower your costs.
2) Look at Rates Based on Your Current Portfolio
Consider the value of your current portfolio. For example, if you have a lot of property, it might be worth paying more for insurance to keep your premiums manageable. On the other hand, if you have only one or two properties, it might be worth looking for cheaper insurance and seeing what companies are willing to work with you.
3) Work with Property Managers to Reduce Risk
Property managers can help you reduce insurance-related risks by taking care of things like scheduling maintenance, managing tenant relations, and keeping the property clean. If a risk does happen (like an apartment fire), your property manager will be on the scene immediately to take care of the situation. You’ll also save on premiums because your property manager will have a better idea of what’s going on with your building than anyone else—meaning they can tailor coverage to suit your needs.
4) Examine Expenses Across the Board
The first thing that you can do is examine the expenses across the board. This will help you understand where your money is going and where it could be cut. You might also want to speak with an agent specializing in real estate insurance to see what they recommend or if they have any suggestions for finding lower rates. You may even find that working with a property manager can reduce your insurance-related risks, ultimately leading to lower premiums. Lastly, shopping around for different policies and rates might also be beneficial.
5) Don’t Opt Out of Coverage
You may be tempted to opt out of coverage if your property is vacant, but doing so can lead to severe consequences. If you do not have insurance and someone becomes injured on your property, you could find yourself in legal trouble. If there is a fire or a natural disaster, the damage to your property could be worse than if you had bought insurance from the start.
It’s essential to ensure you’re adequately insured in case of an accident. However, it’s also important not to fall prey to high premiums that can dent your budget. So when it comes time for renewal, don’t be afraid to shop around and find the best rates available for your portfolio. You could also reduce risks by working with property managers on alarm systems and other devices that make it harder for people to break in.
If you are interested in receiving short-term funding or lending to flip a home, Michael Leafer is one of the top brokers in the area. Contact him today to see if you are eligible for some funding to help with your real estate goals!