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How to Snag
a Low Cost Landlord Insurance
Affordable Insurance Landlord PART 1
Are
you looking for a solid yet low cost landlord insurance for your rental
property. Find out what are the tried and tested ways to save money on
your insurance costs right now with our affordable insurance landlord
guide.
1.
Calculate Your "Building Sum Insured" Correctly
Building
Sum Insured is the cost of rebuilding your house from scratch if it was
totally destroyed by an unseen event such as a large fire or natural
disaster.
Too
many landlords make the serious mistake of simply using their property
value as the the building sum insured. Property value includes both the
cost of the building and the land which it sits on. If your rental
property is sitting in a prime location, a large chunk of your property
value will be due to the land value and not the building cost.
By using property value as the building sum insured, you will end
up overpaying for your landlord insurance. For an affordable insurance
landlord, your building sum insured should only be equal to the value
of your rental building itself (excluding the land value).
One
way to estimate the value of your building sum insured is to find out
the unit price of an empty plot of land near your property and deduct
it from your total property value. Do note that the land should be
zoned for residential purposes as well.
2. Increase Your
Deductible Amount if Possible
The
deductible is the sum of money you are willing to pay for any losses
before your insurance coverage kicks in. For example if your deductible
amount is $250 and you had a fire outbreak that caused $600 in damages,
you will have to fork out $250 out of your pocket and your insurance
company will pay the rest of the $350.
Naturally
if you choose
to have a higher deductible amount, your insurance company will be
happy to offer you a low cost landlord insurance. By raising your
deductible from $250 to $1000, it's possible for you to cut your
insurance premiums by up to 20%.
However
do
not be tempted to set your
deductible too high just for an affordable insurance landlord or you
may have problems paying off your own share of the losses when
they do happen.
3.
Beef Up the Security of Your Rental Property
If
you are looking for low cost landlord insurance, one way to pay less
premium is to improve the security of your property. By installing
burglar alarms and dead bolt locks, you reduce the chance of thefts and
break-ins.
If you have a sizable number of furniture,
appliances and fixtures, you can also save up to 10% of the insurance
costs when buying landlord contents
insurance.
Other
than giving you access to more afforable landlord insurance, a safe and
secure home makes the rental property more attractive to tenants as
well. This is likely to increase both your asking rent and pool of
interested tenants.
4.
Improve the Fire Safety of Your Rental Property
By
reducing the risk of fire damage to your property, you can expect to
fork less money for your insurance. Installing smoke detectors and fire
extinguishers is one way to upgrade your fire safety.
While most people are aware that being a smoker will increase the cost
of their health insurance, do you know that if your tenants are smokers
you will also end up paying more for your landlord insurance as well?
This
is because smoking is considered a fire hazard by most insurance
companies so choosing tenants who are non-smokers will help you lower
your premiums.
Ready to
uncover more proven ways to slash your landlord insurance premium for
an affordable insurance landlord?
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