Building owners are naturally interested in ways to lower their insurance rates, thus reducing their cost of ownership. There are actually many ways that this can be done! If you’re a building owner looking for ways to cut down your insurance rates, here’s some food for thought:
1. Creating a Building Profile
Creating a building profile to provide to the insurance company is one of the easiest and best ways to reduce insurance rates. A variety of factors affect building insurance rates, including number of units, replacement costs, type of construction, claims history and more. By presenting a comprehensive building profile to the insurance company, building owners can ensure that it has all of the most recent and relevant data on which to base your insurance rates. Remember to review your building valuation regularly. Over time, the cost of material and labor can change, sometimes significantly. Discuss the difference between replacement cost and cash value with your insurance broker.
2. Ensure the Property is Well Maintained
The better maintained a building is, the lower the insurance rates will be. Building owners should pay careful attention to the following areas and ensure that they are maintained on a regular basis:
- Well-lit hallways and walkways
- Child-safe windows
- Crack-free sidewalks
- Hardwired smoke detectors
- Closed fire doors installed with proper panic hardware
- Mold eradication
3. Improve Safety for More Savings
Additionally, the more steps that you take to boost the safety of your building and reduce risk, the more that you can expect to save on your insurance rates. For instance, you might consider installing an alarm system and security cameras. Hiring a doorman is another great way to boost your building’s safety level while lowering insurance premiums.
4. Upgrades Can Save You Money
While it isn’t uncommon for building owners to be hesitant about investing in upgrades, it’s important to recognize that upgrades can pay off by resulting in lower insurance rates. Specifically, upgrades to major systems, such as your electric, heating, and plumbing, work to improve your risk profile, thus lowering your rates. In planning for upgrades, keep in mind that cheaper is not always better.
5. Working with an Experienced Insurance Company
It is vital that your company select a knowledgeable insurance company with specific experience in working with real estate clients. The insurance broker that you choose should be prepared to work with you throughout the year to make certain that all of your needs are covered. Make a point of discussing the availability of and need for insurance coverage “extras,” such as personal injury, loss of rent, excess liability, and other types of exposures.
Lowering real estate insurance rates can present a significant source of savings for property owners. Evergreen Insurance & Risk Management provides a variety of insurance product options, ranging from commercial real estate to multifamily rentals and condos. To learn more about how you can reduce your insurance premiums, contact one of our representativestoday.