Let’s face it: insurance is expensive. However, as a property owner, it’s important to ensure that your building is protected. Luckily, there are a few ways you can reduce your insurance costs by being strategic in choosing your provider and avoiding unnecessary fees.
Keep reading for four ways to lower your insurance as a property investor.
- Find a Knowledgeable Insurance Provider
Working with an insurance provider who is knowledgeable about the specific kind of property you own ensures that it will be covered correctly. When working with an insurance expert who is unfamiliar with your type of property, it’s more likely that your building will be over-insured or lack coverage. This can unnecessarily cost your business thousands of dollars.
Having a provider who is familiar with the type of building you own saves you money and ensures that you get the coverage you need for your property.
- Consider a higher deductible
A higher deductible decreases your premium cost. While this can cause you to pay a higher deductible, you can explore options to participate in the deductible buyback. This is a separate policy that covers the cost of the higher deductible.
This can lower your insurance costs and the savings from opting for a higher deductible that can often pay for the buyback policy.
- Negotiate annual percentage rate
The annual percentage rate (APR) is the yearly percentage cost that you have to pay to borrow money and fees. This part of your policy is negotiable. Lowering your annual percentage rate can save your business thousands of dollars every year from reduced fees.
The key to this is finding an insurance provider who is willing to negotiate APR. You can get the same policy with different insurance providers depending on their willingness to negotiate.
- Minimize how often you change providers.
Your company will benefit from finding an insurance provider that works for you and sticking with them. The more that you change providers, the less a company wants to take on your account. Insurance companies lose money on short-term accounts. If you have a history of staying with a company for short periods of time, providers are likely to charge higher premiums to make a profit.
Stay with the same company as long as possible and don’t switch unless you have a specific reason to. This can keep your costs low since your provider will be able to make money off of your account and won’t have to charge you higher rates.