Things You May Not Know About Rental Property Insurance, Part One: What Happens When I Bun
No one wants to pay more for their insurance if they don’t have to. That’s why shopping around at different insurance companies and researching your options is important. If you’ve got more than one type of insurance, what’s the best course of action? As property managers, we try to keep ourselves up to date with the latest property management news and that includes insurance. Our friend, Mike Innis at Hendry Swinton McKenzie Insurance, gave us some great tips that we felt needed to be shared with people like you.
Getting The Right Insurance
It’s common knowledge that homeowners insurance isn’t the same as renters or tenant insurance. The same can be said for homeowners insurance and rental property insurance, also known as landlord insurance. It’s important to understand this difference.
As a homeowner, we know that getting insurance is near-mandatory. But your homeowners’ insurance doesn’t cover your rental. And it may or may not surprise you, but landlord insurance tends to be more expensive as it covers more of the risks your tenant might face. When you’re looking to buy insurance, you might consider getting it from different carriers, ie. separately. But many insurers will likely offer to “bundle” all your insurance together. And we’re not just talking about homeowner and landlord insurance. This could include car insurance too if you’re a car owner.
What Are the Pros of Bundled Insurance?
Well, of course, there are pros to bundling your insurance, otherwise, people wouldn’t do it. For one, you get immediate savings. Everyone lovessavings, don’t they? Second, it’s convenient. You’re not working with different providers, juggling different payments at different due dates. When you pay, you pay for them all. And third, your savings can occur when accidents actually hit. Instead of having to file two separate claims if a natural disaster damages your home and car, it’d be ideal to send that all in one claim, right? Rather than pay two deductibles, and deal with two companies, you’d pay one, perhaps cheaper, deductible without having to sacrifice your coverage.
So if It’s So Great, Why Are We Talking About This?
Because it’s not all smooth sailing. In fact, it can come as a shock to rental owners to find out their rates and home insurance are affected by their rental alone. If you bundle your home and landlord insurance onto one policy, your home may be at risk when a claim comes through on your rental. Like with any contract, it’s important to read the fine print when it comes to any insurer. Depending on who you’re with, if you put in a damage claim on your rental property, it could clear your entire claims-free history off your whole policy. If you’ve received discounts over the years from being claims-free, you can kiss them goodbye. And that can be devastating. The inability to separate properties can cost you big money in the following years after a filed claim.
A good property management company should understand the ins and outs of all property management. We know where our expertise lies and understanding insurance may not be one of them. That’s why it’s important for us to get that information from the experts. When you trust us with your property, we give you peace of mind on all fronts. Contact us today if you’re ready to lift the stress of landlording off your shoulders.
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