How to Insure Multiple Rental Properties

Don't make this mistake if you have multiple properties.

As a landlord, you know that insuring your rental properties is important. But what if you have more than one rental property? How can you insure them all without breaking the bank?

If you're a landlord with multiple rental properties, you know insuring them can be a bit of a challenge. You want to make sure all of your properties are adequately covered in case of damage or liability, but you don't want to spend a fortune on insurance premiums. Here are a few tips on how to insure multiple rental properties without breaking the bank.

Get professional advice

When it comes to real estate, you don't want to guess or only go the cheapest route. Get professional advice from a tax, legal, and insurance perspective. This can help you navigate the different regulations, maximize your income, and make sure you are fully protected. You can insure properties either as an extension of your personal homeowners policy or through a separate commercial insurance policy. 

Depending on your personal circumstances, some professionals will recommend putting each property under a different entity like an LLC. This can protect one property from another should there be a lawsuit. It can also help streamline your tax returns. How you structure ownership of your rental properties will make an impact on your insurance, so it is important to do your research and get the right advice before you choose.

Shop around for the best rates 

Insurance rates can vary widely from one company to the next, so it pays to shop around. Get quotes from several different companies and compare the coverage and rates before making a decision. You will need different coverage based on whether your tenants are long term or short term. 

Be sure to get quotes for both comprehensive and liability coverage, as well as any other coverage you may need, such as flood or earthquake insurance. If you live in an area that is prone to natural disasters, such as hurricanes or earthquakes, then you may need to purchase separate policies that cover those specific risks.You also want to consider adding other insurance coverages such as rental loss protection. 

Bundle your policies 

If you have multiple rental properties, you may be able to get a discount by insuring them all with the same insurer. This can often be cheaper than insuring each property separately. Bundling your multiple properties into a single policy can also be more convenient, making it easier to keep track of your coverage since everything will be in one place. 

In addition, with one policy, you will typically only have to pay one deductible instead of a deductible for each property. You may also be able to get a discount by bundling your rental property insurance with other types of insurance, such as your auto or homeowners insurance. This is called a multi-policy discount, and it can save you a significant amount of money. 

Get discounts for security features

You may also be able to get a discount on your premiums if your rental properties have certain security features, such as deadbolt locks or security systems. Investing in smart home devices can provide early warning signs of potential issues and give you real-time information on your properties. This will not only help reduce your insurance premiums, but also give you greater peace of mind when it comes to protecting your properties. Be sure to ask your insurer about any other available discounts. You may be able to reduce your insurance costs by making some upgrades and repairs.

Adjust your deductibles

If your premium is too high, look at changing your deductible. The higher your deductible, the lower your premium will be. This means you'll have to pay more out of pocket if you need to make a claim, but it can save you money on your premiums. Just be sure you have enough savings set aside to cover the increased deductible in case of an accident or other disaster. 

Review your coverage regularly

As your rental properties change hands or undergo renovations, be sure to review your insurance coverage to make sure it still meets your needs. You may need to adjust your coverage or add additional protection as your circumstances change. Especially as the value of your properties increase, review your policies regularly to ensure they're up to date. 

If you're a landlord, it's important to make sure your rental properties are properly insured. By following these tips, you can insure multiple rental properties without breaking the bank. Insuring multiple rental properties doesn't have to be difficult or expensive. By shopping around, considering a package policy, raising your deductibles, and reviewing your coverage periodically, you can find a policy that fits both your budget and your needs.