Insurance companies offer homeowners many different kinds of discounts on their insurance policies. Discounts vary from insurer to insurer. One discount that most companies offer is a multi-policy discount. Landlords in Ludlow, Massachusetts may be able to take advantage of this discount and save on their homeowners insurance.

Multi-Policy Discounts May Help Landlords in Ludlow, MA Save on Homeowners Insurance

Multi-Policy Discounts Reduce Insurance Premiums

Multi-policy discounts are typically offered to anyone who has two or more insurance policies with the same company and under the same account.

Since most homeowners need more than one insurance policy, it’s easy to qualify for a multi-policy discount if you own your home. Bundling homeowners insurance and auto insurance together is one of the most common ways homeowners get the discount. Homeowners, however, can often qualify by bundling their home’s insurance policy with any other policy. It doesn’t necessarily have to be with an auto insurance policy.

Landlords Might Qualify for Multi-Policy Discounts

Landlords who own their own home and at least one rental property might be able to qualify for this discount, since both properties need to be insured. Whether they qualify may depend on how their rental business is structured.

Landlords who hold their rental properties under their personal name (which might not be a wise legal move) can typically get a multi-policy discount by insuring their rental properties with the company that also insures their home. Both properties are held by the same person and insured with the same company, and, thus, meet most insurer’s criteria for a multi-policy discount.

Landlords Using an LLC

Landlords who keep their rental properties in an LLC may not be able to use their rental properties to qualify for a multi-policy discount. Even if they insure both properties through the same insurance company, the properties are held by separate entities. A landlord’s home would be their personal asset and insured under their own name. Their rental property, if it’s held by an LLC, is owned by a separate legal entity -- the LLC. Therefore, its insurance policy would be under the LLC’s account. Since the two policies would be bought under different accounts, they might not qualify for a multi-policy discount.

If a landlord can’t get a multi-policy discount by bundling their home’s insurance policy with their rental property’s policy, they might be able to get the discount by purchasing a personal umbrella insurance policy through the same insurer. A personal umbrella policy wouldn’t be held by the LLC but by the landlord and, therefore, insured under their personal account.

Multi-Policy Discounts Add Up

All landlords in Ludlow should look into multi-policy discounts. Even if they already have the discount or have their rental properties held in an LLC, landlords should still explore this potential discount because it can save policyholders a decent amount of money. Landlords who already have a multi-policy discount might be able to also apply it to their rental properties’ insurance policies, and those that have an LLC may still be able to qualify by talking with their insurance company or getting an umbrella policy.

Exactly how much landlords stand to save with this discount depends on the number of policies they have, how high their premiums are, and how their insurer calculates the discount. Most multi-policy discounts provide a premium reduction that saves policyholders money each month, though, so even a small discount adds up over time.

Talk with a Homeowners Insurance Agent in Ludlow, MA

To see if you can use your rental properties to qualify for a multi-policy discount, contact your homeowners insurance agent. If you don’t have one, look for an independent agent who serves the Ludlow area. Even if they don’t specialize in rental property insurance, they’ll still be able to check if your insurer offers a multi-policy discount and see what their requirements are to qualify for it. Then, you’ll be able to figure out how to take advantage of this monthly money-saving opportunity.