5 things you should know Factors to Consider When Choosing Your Rental Property Insurance Policy When looking for an insurance policy for your rental property, you need to be alert to more than just the bottom line price. Many policies may be able to save you a few dollars, but when you need the policy the most – in the event of a claim – those policies may not be able to help you due to limitations or exclusions.
Prices
To help you with the process of finding the most suitable policy for your investment at a reasonable price, here is a list of 5 items you should consider when choosing the policy that is the best fit for you.
Look for Value in the policy and not the cheapest price because the cheapest policy many result in a lot of exclusions. Asking about policy fees and payment terms can reveal additional fees or higher
“Full coverage” may not be true to its word. Always read the fine print and check for things like the sublimits for items like the sewer backup coverage or equipment breakdown coverage.
Co-Insurance is a penalty you’ll pay in the event you report a value for your property that is less than the actual cost to rebuild the property. Make sure to advise your insurance broker of all specifics of your property as
Multi-policy discounts
accurately as possible to avoid paying a penalty in the event of a claim.*
Make sure to ask if there are any discounts for combining, your home, auto, business or investment property with the same company.
Exclusions & Extensions
Co-Insurance
Sub-limits
interests that increases cost in the long run.*
Review and educate yourself with what claims will not be covered by your policy, if you are willing to pay for these losses yourself, and what extensions are included in the policy in the event of a claim. Typically, extensions are included for no additional premium and could provide some extremely valuable coverage compared to other policies. Statistics and information provided by: Acumen Insurance Group
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