RETHINK INSURANCE DEDUCTIBLES
USE SECURITY DEPOSIT ALTERNATIVES
Insurance costs continue to rise in 2026, making it critical for rental property owners to rethink how risk is managed. One of the most effective strategies is increasing insurance deductibles to lower premiums and protect long term cash flow. The days of filing claims for small losses are over. Frequent minor claims can lead to higher rates, policy restrictions, or non-renewal. Owners should focus on protecting against catastrophic events while self funding smaller repairs through reserves. This approach stabilizes operating expenses, preserves coverage, and positions the property to remain insurable and financially resilient in a tightening insurance market.
Security deposit alternatives are one of the smartest risk management tools a rental property owner can use today. Instead of holding large cash deposits, which create accounting liability, trust account compliance, and refund disputes, you can require tenants to purchase a security deposit insurance policy. This practice shifts damage risk to a third-party provider while improving affordability and hastening lease-ups. The result is stronger cash flow, fewer collection battles, and less administrative friction. For landlords focused on scaling, protecting capital, and operating like a real business and not a hobby, security deposit alternatives provide cleaner protection with better liquidity control.
THIS PRACTICE SHIFTS DAMAGE RISK TO A THIRD-PARTY PROVIDER.
THE DAYS OF FILING CLAIMS FOR SMALL LOSSES ARE OVER.
Brian Tulibaski Commercial Realtor in ND & MN Horizon Real Estate Group Connect with Brian
Joshua Christensen Qualifying Broker R1 Commercial Realty Connect with Joshua
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