Landlord insurance and your credit part 2

August 16th, 2006 by Kenric

I posted part_1 a few weeks ago. It took a backseat for a moment while I was in Chicago, but today I finally sat down and gave Allstate a call. Allstate also uses the same credit rating scoring system that Farmers did.

Since I was now well aware of the credit rating’s affect on my premiums I called and told the insurance agent that I was a middle score candidate. She was confident that Allstate could still beat both the rate for Farmers and State Farm. After going through the quotes and many options, Allstate did indeed beat both on landlord policies. If you have them insure your car and primary home, you get a 35% discount on the landlord policy. Their landlord policies were already cheaper, but with the discount it became a no brainer. We are talking 1/3 to 1/2 the price of the others.

Just to give you an idea on how your credit affects your insurance rates. On my landlord policy, if I had perfect credit my premium would have been $370. If I had the worse credit in the world, $910. This is for the exact same policy!

I also switched my car insurance and primary home to them. Allstate was slightly higher in both primary and car insurance, but we are talking $50-$100 a year. That’s nothing compared to the $600/yr I save on the landlord policy! We are talking $600 per property in the future!

I also inquiried about getting an umbrella policy. These policies are pretty cheap for the amount of coverage provided. We are talking $150/yr for $1,000,000 of coverage. With those numbers, it would be foolish for anyone to not have this insurance, even if you weren’t investing in real estate.

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