WHAT YOU CAN DO TO REDUCE YOUR RATES
Although this may all come across as bad news, not all is lost. Most standard insurance carriers are still offering discounts by incentivizing property owners with better rates for having the following types of building protective services: • Sprinkler systems • Central-station or local fire alarms • Central-station burglar alarms • Security systems While local ordinances may not require you to have the above protective services, insurance carriers do provide incentives for having them in place as they reduce the carrier’s risk and the likelihood that they will have to pay for claims. For coastal areas in particular, additional discounts are provided for the following storm mitigation features: • Hurricane wind-rated roof coverings • Secondary water resistance • Hurricane ties • 8D nails for roof deck attachments • Having a hip-shaped roof (shaped like a pyramid)
Buildings are considered “old” if they were built more than 30 years ago. For owners of older properties, the markets are more limited than they have been in the past. However, additional markets will also open to you if you can provide written proof (receipts or invoices) of recent (within the past twenty years) updates or replacements that have been done to:
• Roof • Wiring • Plumbing • HVAC systems
Here are some other ways to lower your insurance costs:
• Increase your deductibles • Get quotes from insurers who offer discounts for paying in full or for maintaining a good credit score • Review your coverages annually • Shop around!
CONCLUSION
Due to the lack of competition currently in the market, the best way to set yourself up for success is to make sure you are working alongside an agency that specializes in your industry and alongside an agent who can both educate and prepare you for how underwriters will approach your individual insurance exposure. Working with an agency that knows your business and the inherent risks that come with being a landlord and that is also staying up to date with the developments in the industry will benefit your investment in the long run. Although rates will be increasing in the new year, it does not cost anything to shop around to make sure you are with the right agency and carrier to meet your needs.
LAUREN LIEB Sr. Commercial Risk Advisor InsuranceHub (678) 812-2516 LLieb@insurancehub.com
Lauren has been with InsuranceHub for over 7 years and specializes in advising clients all around the country in regard to their multifamily and other lessor’s risks properties. When she is not helping her clients, you can find her fostering dogs for animal rescues (and only occasionally keeping them). She originally hails from Ohio, but now lives in Decatur, Georgia with her husband and menagerie of pets.
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