While homeowners insurance isn’t a topic that most people tend to think about, many homeowners and investors who own two or more properties are often over looking a place where they can save money, their property insurance. Very few property owners know about and take full advantage of discounts on their home owners insurance polices. There are a multitude of savings for property owners on home owners insurance but it is up to the consumer to ask for and look for these discounts. The insurance companies will not disclose these discounts unless asked. Investors who own multiple properties could see discounts upwards of 35% on each insured property. Such savings could be reinvested elsewhere.
If you own multiple properties, start out by calling your current insurance agency and ask if there are any discounts for people whom have multiple insurance policies. Much like how insurance companies give bundle discounts when you have both an auto insurance policy and a home owners policy with the same company, many insurance companies will be willing to work out a deal with you. When you do shop around talk to an agent directly over the phone or in person if you own more than one property, instead of merely looking at facts and figures on some website. Some insurance agents are empowered to offer better deals to consumers directly, and of course they do not advertise this fact, after all they are in business to make money. When shopping around for quotes, try to get at least five quotes. You can try to negotiate with them directly and do tell them if you found a lower rate elsewhere, as often times they will be willing to match or beat their competitors offers.
Most people whom own two or more properties own them as investment properties, so their insurance needs differ from that of a regular home owner. Investment properties are a good source of income in today’s economy, especially rental properties, but every method you can get to maximize your profit margin helps. One way to do this is the lower the cost of keeping the property, which includes your home owners insurance policies. Shopping around for the lowest possible rate while still getting the coverage you need is a great way to reduce your expenses. Some insurance companies specialize in dealing with investment and rental properties, so look into those and compare their rates with those of ordinary insurance companies. Some companies such as American Modern specialize in bundling multiple properties into one policy, one payment, and one renewal date.
Another way to save money with your insurance is not with the insurance itself, but at tax time. Most owners of multiple properties forget to claim the costs of owning the property on their taxes. You can make deductions for any premiums that you pay on your properties, on almost any type of insurance you would need, including fire, theft, and flood insurance as well as landlord liability insurance. Also another method to save money when insuring multiple properties is to insure only the cost of the dwelling. Many people forget that the land itself, is factored into the properties value, but the land itself cannot be damaged or stolen. You want to only insure the replacement cost of the building on the property.
Insurance companies tend to offer other savings that depend on various factors, many of which people with more than one property already qualify for. For example some insurance companies offer discounts for being a member of a Landlord Association. Using a Property Management Company can also be a deduction.