Well look who’s interested in getting landlord insurance coverage. Congrats! Careful though, because finding insurance quotes on your own can be a long process that involves loads of guesswork, confusion and hair-pulling. But don’t worry, we can make finding quotes for the right landlord insurance coverage much easier.
Our independent Insurance agents will roll up their sleeves and tackle all the not-so-fun parts for you. They’ll ask the important questions, go through a crazy-detailed account of your situation, and compile multiple policies from multiple carriers, all for you.
But before they do, we want to walk you through a few things to keep in mind so you know where companies come up with their quotes and what you can do to make the process as easy as can be.
How Landlord Insurance Quotes Are Born
Before you dive into getting coverage, you should know how insurance companies come up with quotes.
- They start by evaluating a series of risk factors that have number values (costs) associated with them, in a rating manual.
- Risk factors may be things like age, gender, location, etc.—things that could increase the chances of you filing a claim.
- The cost of the risk factors is determined either through studies of historical trends, or via analytical models (basically, super-sciency/mathy stuff).
- They'll check off those attributes that apply to you.
- A quote comes from the sum total of everything checked off on the list—plus a bit extra factored in for the insurance company's profit margin. However, due to competition from other companies, they might lower the price a bit.
NOTE: Quotes are subject to change—the insurance company may gradually increase your premium over time to keep up with the financial demands of offering the coverage.
How to Get the Landlord Insurance Quotes You Want
Step 1: Understanding Landlord Insurance and Why You Need It
Now that you understand how landlord insurance quotes are born, it's important for you to understand what landlord insurance is, and why you'd need/want it:
- The what: Landlord insurance is a contract between a property owner and an insurance company. Simply put, the contract says you’ll pay your premium and the insurer will offer financial protection in the event that the property they rent out becomes damaged by things like fires, break-ins, or other dangers (maybe not stampeding elephants).
- The why: If your property was purchased with a loan, chances are the bank’s gonna require certain insurance coverages to protect their investment. But besides that, covering your property while renting it out will help protect your investment and even personal life, should the damage spill over.
Landlord insurance helps reimburse you if your property becomes uninhabitable, forcing your tenants to relocate, and it will protect you from medical/legal expenses if someone’s injured on your property. Just the peace of mind of being covered is well worth it.
Step 2: Gather All Your Info
Landlord insurance quotes are only as good as the info you provide. So make sure you supply the following details with a surgeon’s accuracy:
- The addresses of your rental properties
- The dates of purchase and purchase prices for all properties
- Any upgrades/improvements to the properties
- Any current/recent rental property insurance policies and claim history records
- Any safety devices installed on each property—including burglar alarms, motion sensors, fire sprinkler systems and a hidden crazy/angry uncle with a bat
- The square footage of each unit
Step 3: Connect with an Independent Agent
Comparing quotes by yourself can be complicated. You've gotta keep things in mind like the insurer’s claims process, customer service and reputation, or risk a great deal of kicking yourself should something bad happen.
Here's where an agent comes in to save the day for you—they’ve been through all of this a million-ish times before and they'll know everything that's important to consider when comparing quotes.
An independent agent can make your life a whole lot easier—at least through this process. Since they're not tied down to one insurance company, they're free to shop, compare and assemble all the pieces of the coverage puzzle for you—even if they end up coming from multiple carriers.
Step 4: Work with Your Agent
Your agent is really your right-hand man or woman. They’re here entirely for you. So take advantage of that. be open, honest, tell them a joke or two, and they can help find the right quotes for you, without overinsuring and without overpaying. Here’ are a couple things you definitely want to talk to them about:
- Your current rental property values
- Your standard lease agreement, which outlines tenant responsibilities
- The different types of available coverage (i.e., loss of income, flood insurance, umbrella liability insurance, etc.)
- Any additional structures on your properties (i.e., garages, laundry facilities, storage buildings and moon bounces)
- Any coverage needed for your employees (i.e., grounds maintenance workers, office staff and personal Starbucks errand runners)
- Ask for and discuss any deals or incentive payment plans (i.e., discounts for paying annually vs. monthly).
- Pick the best combination of coverage for you (the agent's working for you, after all).
Step 5: Tell Them Everything
And we mean everything, except the TOO personal stuff. Tell them all the nitty gritty details you might rather gloss over, because inevitably they, or the carrier, will eventually find out.
And if you purposely omit a known risk or two in order to get yourself a lower premium, it WILL come back to bite you in the you-know-where. So keep these pointers in mind:
- If they do ask, you tell. This honest communication will lead to a premium/risk match in terms of your policy's price (and no biting of any kind).
- If they don't ask, you tell. Don't ignore anything you think is relevant just because it didn't come up. The longer the Q&A/confessional segment with your agent, the better your landlord insurance quote will ultimately be.
The Lowdown On Online Quotes
We know what you want—quick and easy landlord insurance quotes in under a minute. We get it, you want the whole cake ASAP. However, choosing supersonic speed could mean sacrificing accuracy...which could end up costing you.
Look, we all love quick quotes—but online companies might leave out options that'll save you some serious green, while conveniently leaving in factors that assume higher risk and leave you with a pricier policy.
Plus, our competitors might sell your precious info to multiple companies, which could lead to a bunch of unrecognized phone calls and a flooded voicemail box. We flipped the script by giving YOU the info and options to connect with an independent insurance agent on your own terms.
TrustedChoice.com Article | Reviewed by Paul Martin
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