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Rental Property Insurance in 2023

Posted: March 07, 2023

As a landlord, it’s vital that you have adequate insurance. Obviously, you want to protect your property from any sort of natural disaster, fire, or other tragedy. However, you also need to have insurance in place that will protect you as a business owner, which is what being a real estate investor makes you.

As is the case in virtually every industry, insurance prices are rising. As an investor, every dollar matters, so it’s important that you consider the future regarding your insurance rates and what you can do to lower those costs.

2023 Insurance Projections
The United States was riddled with natural disasters in 2022, which has changed the landscape of property insurance in 2023. While it is expected that insurances will have to raise their rates in 2023 in order to lessen the impact of the money they paid out in 2022, experts also recommend that those purchasing new insurance policies or renewing existing policies carefully review them. This is because many insurance companies are phasing out coverages that used to be considered automatic.

These coverage options include:
• Event insurance
• Guest medical coverage
• Adequate coverage for jewelry and other valuable items

How to Reduce Insurance Costs
One of the most effective ways of reducing your insurance costs is to buy coverage for all your properties from the same companies. Most reputable companies allow customers to bundle their coverage, which reduces the overall cost of their policies.

It’s also a good idea that you shop around when looking for insurance. While many insurance companies will offer preferred pricing to long-term customers, you should still consider other options. Insurance rates are often negotiable, so not only should you shop around, but you should also make sure to tell insurance companies about the pricing that other companies are offering you.

Finally, you may consider raising your deductible. This is especially true if you own properties in an area that is not prone to natural disasters. While it would mean that you have to pay more in the event of a disaster, you can save on your premiums.

In the world of real estate investing, you need to make the most of every dollar. Having adequate insurance at a price that works for you is a major part of that equation.