Owning and operating a commercial property involves myriad expenses. If you’re like most property owners, you strive to keep these costs to a minimum. Some are more challenging to shave than others. Fortunately, when it comes to your insurance, you can take several steps to reduce your premium and boost your bottom line.
Determine your deductible: If you can safely manage a higher deductible, you can lower your premium. Work with your insurance provider to determine what deductible amount makes sense for your needs. Set this figure as high as possible to keep your premium low.
Decrease tenant coverage: Are you insuring your tenant’s possessions? You don’t have to. To reduce your premium, exclude tenants from your policy and require them to obtain their own coverage for their belongings.
Ditch the land: Find out if your policy covers your building only or both the land and the structure. Since you typically won’t need to insure the land, you may be able to cut costs by altering your policy so it covers only the building.
Dig for discounts: Have you looked into all the discounts that might be available to you? Continuous coverage and multiple policies with your carrier often come with discounts. Additionally, if your property has protective features, such as a sprinkler system, a security system, or updated utilities, you may be eligible for discounts.
Consult with your insurance agent to determine whether there are other ways you can reduce your costs. An annual review of your policy is good practice to ensure your coverage meets your current needs.