If you’re a landlord that has been collecting rent from tenants on your properties for quite some time, then you’ve already had the protection of some insurance policies for years now. However, while it is important to have that insurance, and pay your premiums to maintain it, it is also important for you to periodically review insurance policies. But if you already have them in place, why is a review important? There are a few good reasons for this.
Don’t Pay More For Less
One of the key points to keep in mind when you review insurance policies is to look for changes. Obviously, economic factors like inflation and other rising costs will likely mean an increase in payments over time, but this does not necessarily mean an increase in coverage. Your insurance policy review should always be making comparisons with what kind of service you received in the past compared to the level of coverage you are now getting at these different price points.
Be mindful with your insurance policy review and always keep a record of your service and coverage in the past compared to what you are getting now, and see if the value is still there. If not, it may be time for you to rethink your policy.
Building Code Changes
Insurance policies aren’t the only things that change. Depending on the town or city that your properties are located in, the municipal government may have enacted changes to the building codes in the area. If that happens, there is a chance that your building may now no longer be compliant with current code for any number of reasons, including plumbing, foundation structure, or even insulation.
Make sure that a change in building codes doesn’t move you out from under the protection of your insurance policies. After all, there’s no point in paying insurance on a building that doesn’t qualify for protection under the current policy.
Time for More Protection
You may have had your properties smoothly managed for a while, but are now thinking that it’s time to get some additional protection. Perhaps there was a flood in a nearby area or even an earthquake that damaged some buildings and have given you pause for thought. If this is the case, and you think you might like to add additional coverage, it is definitely time for an insurance policy review.
In most cases, additional coverage for occurrences like floods and earthquakes are not standard parts of a policy, so you will have to get more information about how these policies work and how they will integrate with your existing coverage. Make sure the information you get is relevant to your specific insurance needs and concerns.
When things are working as intended, it’s easy to feel secure and perhaps even a little complacent. But it’s precisely when things are going well, and there are no crises to handle that a review of your insurance policies is justified. You may find things you need to update or wish to change because circumstances are now different from when you first got your coverage, which will ensure you are always protected.