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There are two types of rental insurance: those that landlords buy to protect their properties, and those that tenants buy to protect their possessions and themselves.
Renters insurance covers liability so that if someone falls or is otherwise injured on the property you are renting, their medical bills and any legal fees will be covered.
There are ways to save money on both types of insurance.
If you are a landlord, you’ll probably end up paying a little more for rental insurance than you would for homeowner insurance. Fortunately, if you own more than one property, you can purchase umbrella coverage. This policy covers all your properties and can save a lot in total monthly premium.
Another way for a landlord to save on rental property insurance is to determine what kind of rental terms is best.
Rental insurance is more for vacation homes or other instances where the property changes tenants several times in a year.
Like homeowner insurance, a landlord can cut back on rental property insurance costs by adding anti-theft and other safety features to the property. Flood lights, alarm systems and other protection can help reduce policy costs.
It’s also a good idea as a landlord to keep the property maintained and to check on it periodically. A tenant might be less likely to report leaks, floods and other conditions that could lead to potential damage that would require you to file a claim. It’s also important to require the tenants to buy renters insurance to cover liabilities.
A tenant’s rental property insurance won’t cover damage to the building, but it will cover loss of personal property. If there is a fire or flood, the house will be covered, but as a tenant, your possessions will not be.
Renters insurance is typically less than a few hundred dollars a year, and there are ways to keep it even lower.
First, you can consider a policy with a higher deductible. This means you’ll have to pay more out of pocket if you need to replace items. You should not do this if you have a lot of high end, expensive, irreplaceable items. In that case you must be sure to have sufficient coverage.
However, if paying out $500 to $1000 as a deductible is not a problem and will cover your losses, a higher deductible is something to consider to lower your monthly premium.
Also consider going for a long term contract and bundle your insurance. When you move, keep your insurer; they can usually offer the same price for your new rental. Get an annual policy instead of a shorter one. You will get a discount if you use the same insurance provider for other insurance services like auto insurance.
Either type of insurance for rentals is fairly inexpensive when compared to the cost of repairing damages or replacing possessions. With careful planning and research you can save even more on rental property insurance.
In Katy, Fulshear, Brookshire, Sugar Land, Round Rock and Houston, Texas, your local insurance agency is the Katy Texas Insurance. Call 281.398.1010 or toll-free 1.877.952.1010 for help with your insurance needs.