Demanding Tenant Insurance May Result In More Affordable Landlord Insurance

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by: ChrisHartpence
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Word Count: 326
Date: Sun, 6 Feb 2011 Time: 11:07 PM
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If you demand your tenants getting tenant insurance you may enjoy lower monthly premiums on your landlord insurance policies. We all know that you have a duty to insure the building but this insurance expense can destroy your profits so it pays to try to reduce this expenditure if possible.


There are various ways to reduce the cost of insurance. Pick your tenants with care. Insurance providers like elderly tenants or those who are going to be at home during the day, such as housewives. This will mean the property is likely to be occupied more often thus avoiding burglaries and criminal damage. Installing extra security such as fire as well as burglar alarms will even help to reduce cost.

If you abstain from certain types of tenants considered to be high risk by the insurance corporations, like, college students and those on social welfare support, your insurance premiums are likely to be much less. Some house owners are dedicated to renting out to these people. If you come into this category increasing the excess on your policy along with having tenant insurance in place will help achieve lower premiums on your plan.

Don't insure excessively for your property by design or accident. You don't normally cover a building for the present market value as the insurance provider isn't keen on the price it would sell at. It is basically considering the total amount it would cost to reconstruct the building if it were to fall down or be severely damaged due to fire etc. So find out the amount of cover you have in place to ensure that you haven't over-estimated the amount you want and are paying needlessly high premiums for the benefit of making this mistake.

Having a lease that insists on all tenants need tenant insurance is only one of several ways to reduce your insurance premiums when you are a landlord.

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To find out what else you may not know about this topic, check out our article entitled Tenant Insurance, and all the other great stuff on our site! Come visit us on the web at: http://www.tenantinsurancepolicy.com/