How Entrepreneurs Can Lower Property Insurance Without Sacrificing Coverage

As an entrepreneur, your property insurance is an essential purchase for your valuable asset, and protecting it should be a top priority. Property insurance is essential for property safety and protecting your investment as a business owner.

When shopping for insurance, ensure you have the right coverage. You need to choose a provider, analyze the business insurance checklist and compare various policies. Once you know what you need, you can save money on your insurance premiums by following these simple steps.

Buy Property in a Low-Risk Area

The location of your property determines how much you pay for the insurance. If you live in an area with a higher risk of severe weather or crime, your policy will cost more than in an area with lower risk factors. Check the Environmental Protection Agency’s list of neighborhoods to see where you can find a place with lower risk ratings.

Build Your Credit

Most insurers check your credit report when you apply for coverage, so ensure it’s in good standing before applying for a new policy. Good credit means lower insurance rates, showing you’re responsible with money. If you don’t have good credit, start using credit cards and paying them off on time. Your credit score will improve and help lower your insurance rate. Building a good credit history reduces your premium by 10%, depending on the insurance company.

Install a Security System

A security system can save you money and ensure the safety of business premises within the property. If you have a security system, your premium can be reduced by up to 15%. Property owners who install a security system may qualify for extra discounts on their policies. The more advanced the system, the higher the discount. Some companies offer free installation of their security systems with premiums as low as $20. You can ask an alarm company for a free estimate on installation and monitoring if you are unsure how to install an alarm system.

Raise Your Deductible

Your deductible is the amount you must pay before an insurance company starts covering expenses. If you raise the deductible on your property insurance policy, it will lower your premiums. For example, If you have a $1,000 deductible and the roof of your building is damaged during a storm, you pay $1,000 out of pocket before receiving reimbursement from your insurer. If you live in an area prone to flooding or earthquakes, consider raising your flood and earthquake deductibles. 

Compare Rates to Find the Best Deal

Another way to lower insurance rates is by comparing insurance quotes for a better deal on rates. Most insurers offer discounts for paying premiums annually instead of monthly or having comprehensive and liability coverage and other incentives for bundling policies together, such as homeowners and auto. By comparing quotes from multiple companies and options, it’s possible to save hundreds of dollars annually.

Make Your Property Safer

Some safety features cost you less than others, depending on where you live. If you live in an earthquake-free area, you may not need insurance, but it’s worth the extra cost if you want to protect your property from earthquakes.

If you live in areas prone to hurricanes, the damage is a real possibility, so comprehensive coverage for hurricane damage is essential. If your building has been burglarized or vandalized in the past year, it might be time for an upgrade in security measures. Ensure all your doors lock securely and invest in motion-activated lights outside so intruders won’t be able to hide in shadows or dark corners when they try to break into your property.

Bundle Your Policies

Bundling means combining two or more policies under one company and paying one bill for all combined. For example, if you have car insurance with one company and homeowner’s insurance with another company, consider bundling them together so that all of your policies come from one place and one bill goes out each month. This saves you money and gives you access to better rates overall because they’ll see fewer claims. Some providers offer discounts if you bundle multiple policies under one roof.

Pay Annually or Semi-Annually

Most insurers offer discounts if you pay your premium in advance, either annually or semiannually. The discount usually ranges from 5% to 10%, so it’s worth considering whether you can afford this option on top of your mortgage payment.

Make Upgrades to Reduce Your Rates

Insurance companies reward customers who improve their property with lower rates, so consider installing an alarm system and upgrading the electrical panel and water heater. Some insurers offer you discounts for having fire sprinklers installed throughout the building. These upgrades help keep your property safer and more secure. It saves money on your premiums in the long run.

If you’re planning any significant improvements, check with your insurer before starting to work so they can assess whether or not it will affect your premiums and the kind of discount they offer in return for these improvements. 

Review Your Property Insurance Policy

Most insurers require you to review your policy at least once every 12 months and make any changes or updates. If you’ve had a baby, got married, or bought a new car, those are all reasons to check in on your coverage. Check if the value of your home or asset has increased since they were last appraised. Consider increasing your coverage limit accordingly to get all the coverage you need and the discount you are eligible for.

Property insurance is always a trade-off between coverage and cost. You will not find a plan with equally good coverage at a similarly low price. However, this insurance can be made more affordable in several ways, like learning how to save on homeowners insurance, raising deductibles, taking advantage of discounts, and purchasing bundle policies. Before settling on an insurer, compare the quotes and choose one that best suits your needs. This enables you to save money while still enjoying premium coverage.

Rylie Holt