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Insurance for unoccupied properties, sometimes called vacant home insurance or unoccupied property insurance, is a specialized form of landlord insurance coverage that protects homes left empty for an extended period, generally 30 days or more. 

Standard homeowners' insurance policies typically do not cover damages or losses while a property is vacant or unoccupied beyond this period due to the increased risks associated with such situations.

Risks Associated with Unoccupied Properties

Unoccupied or vacant properties have heightened risks compared to occupied buildings. The absence of regular oversight and maintenance makes these properties particularly vulnerable to several threats:

Theft and Vandalism:
Vacant properties are prime targets for thieves who may steal appliances, copper wiring, pipes, or other valuable materials. Vandalism is another concern, as empty buildings are easy targets for graffiti, broken windows, and other property damage.

Trespassing and Squatting:
Unoccupied homes may attract trespassers and squatters seeking shelter, leading to property damage, waste accumulation, and potential legal issues if injuries occur.

Fire Hazards:
Fires are a significant risk, especially if squatters light fires for warmth or arsonists target the property. Unattended electrical faults or heating systems can also spark fires, which may go undetected and cause extensive damage.

Water Damage and Maintenance Issues:
Leaks, burst pipes, or other maintenance problems can go unnoticed for extended periods, leading to severe water damage, mold growth, and expensive repairs.

Weather and Environmental Damage:
Unoccupied properties are more susceptible to damage from storms, wind, hail, or freezing temperatures, especially if utilities are disconnected or maintenance is neglected.

Liability Risks:
Property owners are legally responsible for injuries on their vacant property, even if the injured party was trespassing or squatting.

Loss of Income and Declining Property Value:
For landlords, vacancy means a loss of rental income and can lead to declining property values due to neglect, increased crime, and neighborhood blight.

Special Insurance Clauses for Unoccupied Properties

Unoccupied or vacant properties are subject to unique insurance clauses and limitations that differ significantly from standard homeowners insurance. Here is an overview of the most common and essential clauses:

Vacancy and Unoccupancy Clauses

Most standard homeowners insurance policies contain a vacancy or unoccupancy clause that limits or excludes coverage if the property is left empty for an extended period, typically 30 to 60 consecutive days.

Coverage Limitations and Exclusions

• Peril Restrictions: Coverage may shift from “all risks” to only a limited set of named perils, such as fire, lightning, windstorm, and hail.
• Vandalism and Theft: Most policies suspend or severely limit coverage for vandalism, malicious mischief, and theft once they exceed the vacancy period.
• Water Damage: Most policies exclude coverage for water-related damage.
• Glass Breakage: Policies often do not cover damage to windows and other glass.
• Personal Property: Coverage for personal belongings is often reduced or excluded.

Vacancy Permit or Rider

Some insurers offer a vacancy permit or vacancy clause rider as an add-on to extend or modify coverage for a property that will be unoccupied beyond the standard limit.

Cost of Coverage

Vacant or unoccupied home insurance typically costs 50% to 60% more than a standard homeowners policy.

For example, the average annual premium for a standard home insurance policy in the U.S. is about $1,411. In that case, the average cost for unoccupied or vacant home insurance ranges from $2,117 to $2,258 per year.

Stay Protected with Landlord Insurance

Are you looking for an excellent price on landlord insurance? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

Tenant screening is critical for landlords and property managers, as it helps select responsible and reliable tenants. This process typically involves evaluating potential tenants' backgrounds, credit histories, and rental histories, among other criteria. Effective tenant screening can significantly reduce the risk of late payments or property damage, thus safeguarding the property owner's investment and lowering landlord insurance rates. 

The Importance of Thorough Screening

A comprehensive screening ensures a rental property's success, profitability, and safety. Here are the key reasons why it is essential:

• A landlord can evaluate an applicant's financial stability by reviewing their credit history, employment verification, and income, reducing the risk of late or missed rent payments.
  
  
• Landlords can identify tenants likely to respect and maintain the property, minimizing the risk of property damage and costly repairs.
  
  
• Reliable tenants often stay longer, reducing turnover rates. Screening helps landlords find individuals committed to long-term leases.
  
  
• A thorough screening process includes criminal background checks to identify potential risks to other tenants or the community.
  
  
• Screening tenants with a history of reliable behavior reduces the likelihood of eviction-related expenses.
  
  
• Placing responsible tenants enhances a landlord's reputation, attracting more high-quality applicants in the future.

Insurance Premium Impacts

When landlords screen their tenants, they significantly impact insurance premiums by influencing the perceived risk associated with their property. Here's how:

Reduces the Risk of Property Damage

A thorough tenant screening helps identify responsible tenants less likely to cause property damage. Insurance companies assess the likelihood of claims when determining premiums, and a lower risk of damage often results in reduced coverage.

Minimizes Liability Claims

Screening tenants for criminal backgrounds and rental history reduces the chances of liability issues, such as injuries or disputes, which might otherwise lead to costly claims.

Improves Loss History

Insurers view a property with fewer claims more favorably. Carefully screening tenants helps maintain a clean loss history by avoiding frequent or high-value claims.

Attracts Better Insurance Rates

Insurance companies often reward landlords who demonstrate effective risk management practices, such as tenant screening, leading to credits or discounts on premiums, particularly when combined with other safety measures.

Legal Considerations for Screening

Tenant screening can mitigate legal risks by ensuring compliance with laws and regulations, reducing the likelihood of costly lawsuits, and promoting fair and transparent practices. Here is how it achieves this:

• Screening enables landlords to adhere to the Fair Housing Act (FHA) with rental decisions based on objective, nondiscriminatory criteria, reducing the risk of discrimination claims.
  
  
• Screening processes that comply with the Fair Credit Reporting Act protect landlords from legal actions related to improper use of consumer reports.
  
  
• By conducting careful screenings, landlords avoid renting to individuals who may later dispute lease terms or engage in problematic behavior.
  
  
• Screening tenants for criminal backgrounds and rental histories minimizes risks associated with unsafe living conditions or disruptive tenants. Establishing transparent, consistent screening policies ensures fairness in tenant selection.

Contact Us to Save on Landlord Insurance

Are you looking for a competitive price on rental property insurance? Contact American Insuring Group today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

So call us today at (610) 775-3848 or click here to start saving!

Loss of rental income insurance is a policy designed to protect landlords and property owners from the financial impact of losing rental income due to unexpected events that make a rental property uninhabitable. Your landlord or property insurance typically covers these events, including fire, water damage, severe weather, or other disasters.

Covering Income Loss

Here’s what you can expect with this coverage:

• Coverage For Lost Rents: Reimbursement for the rental income you would have earned if the property were habitable. This protection gives you peace of mind while repairs take place.
• Linked to Covered Perils: The events that qualify for this coverage are those already covered by your property insurance policy, such as fire, vandalism, or storm damage.
• Helps Maintain Financial Stability: It ensures that your cash flow remains steady, even during a disruption. This coverage is essential if mortgage payments, maintenance, or other expenses are still due.

What Loss of Rental Income Insurance Doesn’t Cover

It’s important to remember that this insurance doesn’t cover every situation. For instance:

• It doesn’t apply if the vacancy is caused by normal market conditions, such as difficulty finding tenants.
• It also won’t cover voluntary renovations or repairs unrelated to an insured event.
• It does not compensate for future potential income or losses due to tenant nonpayment.

Conditions for Eligibility

Loss of rental income insurance, also known as rent loss insurance, typically provides coverage for lost rental income due to damage that makes the property uninhabitable. Eligibility conditions can vary by insurer but generally include the following:

1. Property Requirement: The landlord must rent the property out, and the owner should have the legal right to rent it.
2. Covered Perils: The loss of rental income must be due to a peril covered by your insurance policy that makes the property uninhabitable. These perils often include fire, storm, or water damage.
3. Lease Agreement: A valid lease or rental agreement is usually required to demonstrate the expected income loss.
4. Policy Details: The insurance policy must be active, and any premiums must be up-to-date.
5. Waiting Period: Some policies have a waiting period before coverage begins, during which the policy provides no compensation for lost rent.
6. Inspections and Maintenance: The property must be well-maintained and inspected, as neglect can affect eligibility.

Benefits during Vacancies

Loss of rental income insurance does not typically cover vacancies due to tenant turnover but is useful when properties become uninhabitable due to covered perils like fire or storm damage. It provides financial stability by compensating for lost rental income, allowing landlords to cover ongoing expenses like mortgages, property taxes, and maintenance costs.

This insurance safeguards against financial disruptions by ensuring cash flow continuity during repairs. While it doesn't address voluntary vacancies, it offers peace of mind by protecting against unforeseen property damage that interrupts rental income. For rental management, landlords should consider strategies to reduce tenant turnover or expedite tenant acquisition.

Stay Protected with Loss of Rental Income Landlord Insurance

Are you looking for an excellent price on landlord insurance? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

Landlord liability insurance is a critical component of landlord insurance policies. It protects property owners from financial losses related to injuries or property damage on their rental properties. The coverage is designed specifically for landlords and offers protection beyond what a standard homeowner's policy provides.

What Is Covered?

The key aspects of landlord liability coverage include:

Protection Against Injuries: Landlord liability insurance covers bodily injury claims that may arise from accidents on the rental property. For example, if a tenant falls due to a loose handrail, the landlord could be held responsible if found negligent in maintaining the property.

Property Damage Coverage: The insurance also protects landlords from liability due to property damage arising from the rental premises' ownership, maintenance, and use.

Legal Defense: If a tenant sues the landlord, liability coverage can help pay for legal defense costs and court judgments up to the policy limits.

Coverage Limits: Typical coverage starts at $100,000, but landlords can often increase this limit based on their needs.

Importance of Liability Insurance for Landlords

Although most states do not legally require landlord liability coverage, it should be a top consideration for several reasons:

• Mortgage Requirements: Some lenders might require landlord insurance for mortgaged rental properties.
• Financial Protection: It helps prevent out-of-pocket expenses if the landlord is at fault in specific situations.
• Tenant Actions: In some cases, landlords may be liable for their tenants' unlawful behavior if they fail to stop it.
• Premises Liability: Laws in many states require landlords to keep their rental properties reasonably safe for tenants and visitors.

Additional Considerations

• Umbrella Insurance: For extra protection, landlords may consider an umbrella insurance policy to provide coverage beyond the limits of their primary liability policy.
• Tenant Damage: Some policies cover damage caused by tenants or their guests.
• Lost Rental Income: Some policies include coverage for lost rental income if the property becomes uninhabitable due to covered damages.

Claims Examples

Personal Injury Claims

• Slip-and-fall accidents can occur because of broken or uneven stairs, loose handrails, or icy walkways.
• Tenants may be injured if a ceiling collapses due to poor maintenance or water damage.
• Fire-related injuries can result from faulty electrical systems, a lack of working smoke detectors, or failure to maintain fire safety equipment.
• Poorly maintained elevators in apartment buildings can lead to severe injuries or even fatalities.

Property Damage Claims

• Water damage can occur from faulty plumbing and neglected leaks.
• Landlords could be liable for tenant illnesses caused by mold growth from unaddressed moisture problems.

Security-Related Claims

Courts can hold landlords responsible for foreseeable criminal acts if they fail to provide adequate security measures, such as proper lighting, functioning locks, or secure entry systems.

Other liability claims might include injuries caused by tenants' aggressive pets, swimming pool accidents, or the unintentional disclosure of tenants' personal information (data privacy breaches).

Landlords should carefully review their insurance needs and consider liability coverage essential to their risk management strategy. The coverage and limits should be tailored to the landlord's property and circumstances.

Contact Us to Save on Landlord Insurance

Are you looking for a competitive price on rental property insurance? Contact us today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

Landlord insurance protects investment properties against unforeseen risks such as damage or loss. Several key factors influence the premium calculations for landlord insurance, and knowing and analyzing them will help landlords anticipate insurance expenses and manage their financial commitments wisely.

Premium Calculation

Landlord insurance premiums are calculated based on several factors:

• Property assessment: Insurers inspect the structure to determine rebuilding costs in case of severe damage or fire.
• Coverage amount: The level of protection you choose affects the premium with more coverage resulting in higher costs.
• Property location: Areas prone to natural disasters or high crime rates typically have higher premiums.
• Property value: More expensive properties generally command higher premiums.
• Deductible: Higher deductibles often lead to lower monthly premiums but increase out-of-pocket costs for claims.
• Tenant type: Renting to students or short-term renters may be viewed as riskier, potentially increasing costs.
• Property features: Factors like the age and condition of the home, roof, appliances, and HVAC system influence premiums.
• Claims history: Landlords with a history of filing many claims may be considered high-risk and face higher premiums.
• Rental income: Higher monthly rental income often results in higher premiums to cover potential income loss.
• Number of rental properties owned: Owning multiple properties may increase overall risk and premiums.
• Proximity to fire stations: Properties closer to fire stations may have lower premiums due to faster response times.

Insurers use these factors to assess risk and calculate appropriate premiums for landlord insurance policies.

What are the Main Influencing Factors in Landlord Insurance Costs?

Although insurers consider many aspects, the premium calculations for landlord insurance are primarily influenced by several key factors, including the property's location, the type and age of the building, coverage limits, and deductibles. Additional safety features such as security systems and the landlord's claims history can also impact costs.

Properties located in high natural disaster risk areas tend to have hefty premiums, and insurers assess the likelihood of disasters such as hurricanes, wildfires, hail storms, and floods when calculating rates.

Average property insurance premiums have risen by more than 30 percent since 2020, with the highest increases in areas with the most significant risk of natural disasters.

How to Budget for Costs

Landlords can budget for landlord insurance costs by considering several strategies:

• Include insurance premiums in the overall expenses for the rental property, deducting them from the rental income received from tenants.
• Consider policy types and, based on coverage needs and budget constraints, choose between Dwelling Policy 1 (DP-1), Dwelling Policy 2 (DP-2), or Dwelling Policy 3 (DP-3).
• Maintain the property regularly to reduce risks and potentially lower premiums.
• Increase the deductible to lower premium costs, but ensure you can cover the higher out-of-pocket expense if needed.
• Install safety features like security cameras and smoke detectors to qualify for discounts.
• Bundle insurance policies for multiple properties or with other insurance types for potential savings.
• Inquire about multi-property discounts or veterans benefits that may apply.
• The full annual premium upfront is often cheaper than monthly or installment payments.
• Monitor property value fluctuations to ensure you have the right coverage at the best price.

By implementing these strategies, landlords can effectively budget for insurance costs while maintaining adequate coverage for their rental properties.

Contact Us to Save on Landlord Insurance

Are you looking for an excellent price on landlord insurance? Contact us today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

When managing rental properties, safeguarding investments is a top priority for landlords, and comprehensive landlord insurance is a pivotal tool in achieving this goal. This type of insurance provides an extensive safety net, offering all-risk coverage to protect against unforeseen damages and losses. It also covers legal liabilities, ensuring landlords can handle legal challenges or claims.

Moreover, comprehensive landlord insurance addresses potential tenant risks, protecting situations like tenant damage or eviction costs. Landowners can manage their properties with greater peace of mind and financial security by opting for a robust insurance policy.

All-Risk Coverage

All-risk coverage, sometimes called open-perils coverage, is the portion of a landlord insurance policy protecting against an array of potential risks or perils except those explicitly excluded in the policy. Unlike named-perils insurance, which only covers the risks specifically listed, all-risk coverage automatically safeguards against any loss or damage to property from events such as fire, theft, vandalism, or natural disasters.

This broad protection accommodates unexpected or uncommon threats, reducing the chances of coverage gaps. However, policyholders must carefully review the exclusions section since the policy might not cover standard items like wear and tear, war, or government actions.

Legal Liabilities

A landlord insurance policy protects property owners from financial burdens arising from legal claims or lawsuits. This coverage typically includes liability for bodily injury or damage on the rental property, such as an injury to a tenant or visitor from a slip and fall accident. It can cover legal defense costs, settlements, or judgments if the landlord is found liable.

Additionally, legal liability coverage may encompass claims related to wrongful eviction, invasion of privacy, or discrimination. With this coverage, landlords can mitigate the financial impact of legal disputes, ensuring that unexpected legal issues do not jeopardize their investment or economic stability. 

Protection Against Tenant Risks

Another component of comprehensive landlord insurance is protection against tenant risks. It shields property owners from financial losses related to tenant activities, including damage caused by tenant negligence or malicious acts, resulting in costly repairs or replacements. It may also cover loss of rental income if a property becomes uninhabitable due to tenant-induced damage.

Another aspect is coverage for the legal expenses of evicting a non-paying or problematic tenant, which can be lengthy and expensive. By safeguarding against tenant-related risks, landlords can maintain their financial stability and ensure that their property investment remains secure, even in the face of tenant-related challenges. 

We Can Help You Save on Landlord Insurance

Are you looking for the best price and coverage on rental property insurance? Contact our team today! As independent brokers, we will shop among competing insurance companies to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

Choosing the right landlord insurance involves assessing property type, location, and tenant risk. Compare policies to understand coverage limits, premiums, and deductibles. Consider specialized coverage for natural disasters or income loss. Comprehensive evaluation ensures your investment is well-protected against unexpected events and liabilities.

Factors to Consider

When selecting landlord insurance, consider several critical factors to ensure adequate protection for your property.

• First, evaluate the type and location of your property, as these influence the types of coverage you may need. For instance, properties in flood-prone areas may require additional flood insurance.
• Assess your tenants' risk profiles to determine liability coverage requirements.
• Understand the policy details, including coverage limits, deductibles, and premium costs, to ensure they align with your budget and risk tolerance. Consider loss-of-rental-income coverage to safeguard against unexpected vacancies due to covered events.
• Finally, review additional options, such as coverage for legal expenses or specialized protection for furnishings, if applicable.

Thoroughly comparing different policies and providers ensures adequate protection tailored to your specific needs.

Comparing Policies

When comparing landlord insurance policies, consider the previous factors to ensure comprehensive coverage and value for money. Start by examining the scope of coverage, including protection against property damage, liability for tenant injuries, and loss of rental income due to unexpected events. Evaluate the exclusions and limitations of each policy, as these can significantly impact coverage.

Next, review the premiums and deductibles for affordability while balancing the level of coverage. Check the credibility and financial stability of the insurance providers, as well as customer reviews and claims processes, to ensure reliable and efficient service. Finally, consider additional features that might be beneficial, such as coverage for legal expenses or emergency repairs, to tailor the policy to your specific needs.

Specialized Coverage Needs

Specialized coverage needs in landlord insurance cater to unique risks that standard policies might not address. Additional coverages like earthquake, flood, or windstorm insurance protect properties in natural disaster zones. These cover your property against severe weather events not typically covered by basic insurance. If your rental offers furnished accommodations, contents insurance safeguards against damage or theft of your belongings.

Consider rent guarantee insurance to protect against lost income due to tenant non-payment, ensuring financial stability. Legal expense coverage handles potential disputes with tenants, while unoccupied property insurance protects long-term vacant properties more susceptible to vandalism and damage. Lead paint liability coverage might be needed for older properties with potential lead paint exposure.

By considering and including these specialized coverages in your insurance policy, you ensure that you are well-informed and prepared for the unique risks that could affect your property's safety and financial security.

Contact Us to Save on Landlord Insurance

Are you looking for an excellent price on landlord insurance? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

Landlord insurance provides a safety net for property owners who lease their homes, apartments, or commercial spaces. Unlike standard homeowners insurance, landlord insurance covers explicitly the unique risks associated with rental properties, such as property damage, liability exposure, and loss of rental income.

This article explains what a landlord policy covers, the different types available, and why landlords should view these policies as essential coverage.

What Landlord Insurance Covers

Landlord insurance typically covers three primary areas: property damage, liability protection, and loss of rental income.

• Property Damage includes coverage for physical damage to the rental property caused by fire, storms, theft, or vandalism. It can also cover aspects of the property, like the building structure and any appliances or furniture within the rental unit.
  
  
• Liability Protection shields landlords against lawsuits from injuries or property damage on their rental property. For instance, if a tenant or visitor gets injured due to a maintenance issue, the liability coverage can help cover legal fees and medical expenses.
  
  
• Loss of Rental Income coverage provides financial security. If the rental property becomes uninhabitable due to a covered event, such as a fire or severe water damage, this coverage can compensate the landlord for the lost rental income during the repair period.

Types of Available Landlord Insurance Coverage

In addition to the main types of coverage--property damage, liability protection, and loss of rental income--landlord insurance generally falls into a few other types, each designed to cover different aspects of rental property risks:

• Personal Property Coverage is for the landlord's personal property used to service the rental, such as appliances, tools, or furnishings provided with the property.
  
  
• Emergency Coverage provides financial assistance for immediate repairs to protect the property after a damaging event.
  
  
• Rent Guarantee Insurance safeguards the landlord against tenants defaulting on rent payments. It helps ensure steady cash flow even when tenants fail to pay.

As with many insurance policies, landlords can tailor coverage to meet specific needs.

Common endorsements to consider adding:

• Vacant Property Endorsement covers the dwelling if left unoccupied for an extended period, usually 30 to 60 days.
  
  
• Vandalism Endorsement is a good idea in an area with higher crime rates since insurers might not cover it in a standard landlord insurance policy.
  
  
• Burglary Endorsement can provide additional coverage for stolen items like lawnmowers or snow blowers.

These endorsements will likely increase your premium, but they can offer valuable additional protection tailored to your unique needs.

Essential Coverage for Property Owners

Landlord insurance is essential because it protects property owners from financial loss from property damage, liability claims, and loss of rental income. It ensures that landlords are covered against unforeseen events like fires, storms, or tenant injuries, providing peace of mind and safeguarding investments. Without it, landlords could face significant out-of-pocket expenses for repairs, legal fees, and lost rental income, jeopardizing their financial stability and business.

Contact us for the best rates on landlord insurance!

We are independent brokers, shopping the market to find the best rates on quality landlord insurance designed to meet your needs! So call American Insuring Group today at (610) 775-3848 or contact us online to start saving immediately. 

Landlord insurance is essential for anyone who rents out property. 

But how much does it cost? That’s the big question. 

Fortunately, this article provides answers. We explore how insurers calculate premiums and the factors that influence how much you will ultimately pay. By the end, you should understand what you can afford. 

Premium calculation

Premium calculations begin with a thorough property assessment. Insurers inspect structures to determine how much rebuilding will cost in case of serious damage or a fire. 

Next, they ask you the amount of coverage you need. Some landlords require more than others, so it is always a personal decision. If you go to an insurance broker, they will give you quotes from assorted carriers. You can use these to determine insurers offering the best risk-reward. 

During this process, insurance companies calculate the effect of deductibles (discussed below). Usually, you have a choice of how much you want to contribute to the cost of repairs (should they become necessary). 

The last step is to review the policy terms and decide if you are happy with them. If you are, sign on the dotted line. 

The average cost is around $1,895 annually. However, you may pay more, depending on your circumstances.

Influencing factors

Numerous behind-the-scenes actors determine the cost of landlord insurance (similar to other insurance policies), including: 

• Property Location

Property location is one aspect that can affect insurance costs substantially. Areas prone to natural diseases (like flooding or wildfires) usually command a higher premium than those in safer regions. Other factors, like crime, can also play a role. 

• Property Value

The value of the property can also affect the cost of landlord insurance. The costlier it is, the higher the premiums (similar to car insurance). 

Multi-family homes and larger developments are at risk of higher costs because of the valuation effect. However, insurers sometimes charge more for older properties if they believe they have a higher risk of damage or liability. 

• Deductible

You can occasionally lower your monthly insurance premiums by raising your deductible. The more you are willing to contribute, the lower the perceived risk by the insurer. However, if you make a claim, you have to pay more. And that can increase overall costs. 

• Coverage Amount

Coverage amount also affects landlord insurance premiums. The more protection you want, the higher the premium. 

For example, expect to pay extra for things like loss of rental income or liability coverage. 

• Tenant Type 

Lastly, insurance premiums can sometimes vary by tenant type. Insurers often view renting to students and short-term renters as risky because they have reduced incentives to avoid property damage. 

By contrast, long-term renters (with professional qualifications) often have lower risk profiles. These individuals are less likely to cause damage, keeping costs down. 

Once insurers have these details, they can enter them into the actuarial tables and calculate the risk you pose. Then, they can use this information to calculate a suitable premium. 

Contact us to Save on Landlord Insurance

If you are looking for a great price on landlord insurance, contact our team today! As independent brokers, we shop the market to find you the best deal on quality insurance!

So call American Insuring Group today at  (610) 775-3848 or contact us online to start saving.

Landlord Insurance is crucial when protecting your investment; however, effective landlord-tenant communication – which doesn’t cost a dime / just a little time and effort—is just as important. We understand that, as a landlord, you have a lot on your plate, from screening applicants to maintaining your property; however, taking the time to communicate with your tenants could save even more time and effort down the road.

Communication is crucial from the time a potential tenant fills out the application to when they move out. It can help avoid misunderstandings, prevent conflicts, lower tenant turnover, and protect your property, saving time and headaches. Good communication between you and your tenant(s) can also save you money, resulting in higher profits.  

The Cost of Tenant Turnover

Tenant turnover is a costly part of property rentals that landlords and property managers can’t ignore. Tenant turnover creates vacancies, eats up more of your time, and lowers your profit. According to Apartments.com, the average turnover cost ranges from $1,000 to $5,000.

This cost can come from the following and more:

• Cleaning the unit
• Getting rid of anything left behind
• Changing locks
• Possibly re-painting
• Repairing any damage
• Advertising
• The lost income from a vacant unit
• Screening applicants
• Higher insurance costs if it remains vacant

“Reducing turnover isn’t just about preparing a vacant unit for a new tenant; it’s also about retaining good tenants. Landlords can save time, money, and effort by implementing tenant retention strategies. This includes responsive maintenance, periodic property inspections, and creating a positive living environment that encourages tenants to renew their leases,” Swiftland states. “By focusing on tenant satisfaction and fostering positive landlord-tenant relationships, landlords can significantly decrease the turnover rate, ensuring a more stable and profitable rental property.”

A vital component of “fostering positive landlord-tenant relationships” is effective communication.

Tips for Effective Landlord/Tenant Communication

1. Properly Screen Tenants
   Good communication should begin before you allow a tenant to move into your property by adequately screening them: run credit, background, and employment checks and conduct an in-person interview.
   
   
2. Set Clear Expectations
   Begin setting clear expectations during your first contact with them. Before they sign the rental agreement, verbally go over key points, such as rent payments, policies or rules, and maintenance responsibilities. It also doesn’t hurt to remind them of policies occasionally.
   
   
3. Be Responsive
   Address maintenance issues as quickly as possible. If a tenant contacts you with a question you can’t answer immediately, let them know that you understand their question and that you are working on getting the answer.
   
   
4. Foster Trust
   Trust is earned, and you can earn your tenants’ trust by responding quickly, keeping them updated and in the loop, and always being honest with them.
   
   
5. Provide Multiple Communication Channel Options
   Just like your friends and family, you will discover that everyone has different communication channels they prefer – text, email, voicemail, etc. You can ask them what their preferred channel is when they first move in. In addition, certain communications should be delivered through certain channels. For example, longer messages can be sent by email, quick communication can be made through text, and important communication is usually best done through a phone call or letter.
   
   
6. Use Written Communication
   Having written documentation, such as an email or text, can help both parties understand what is being said and provide evidence if a dispute occurs.
   
   
7. Be Friendly and Professional
   You want to act like an efficient waitperson or sales clerk and find the perfect balance between being professional (responding to their needs, getting back to them promptly, etc.) and friendly (asking them how they are, talking about the weather, smiling, etc.).
   
   
8. Keep Messages Simple
   If you’re sending an email or text or leaving a voicemail, you may be tempted to give every detail, but short and simple is usually the most effective way to communicate. Let them know what the issue is or what is going on without giving details that aren’t relevant. Don’t use big words.
   
   
9. Solicit Feedback
   Retailers understand the value of feedback. Landlords can use the same tactic by sending out short surveys, conducting quick interviews, or simply asking for verbal feedback.
   
   
10. Conduct Exit Interviews
    Conduct an exit interview when tenants leave and ask why they are moving out. The answer may be something you can’t control, such as they’re moving into a bigger place, buying a home, etc., or it could be something you can control with future tenants, such as maintenance issues, lack of communication, etc. 

Protect Your Investment With the Right Landlord Insurance

At American Insuring Group, we offer comprehensive landlord insurance policies that cover a range of risks, from property damage to liability claims. Our affordable policies protect your investment and give you peace of mind.

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.