?Insurance Policy – Buy and Hold

[Jeffrey Bradbury]

Hey Guys and Girls,

I’ve done a little searching on the site, and I’ve found the answers to a few of my questions; however, I would love to hear your opinions! I’ve been looking into the different options available to me for insuring my rental property. It’s a single family house that was originally purchased as a home, but the housing crash turned me into a landlord when I decided to move: http://www.zillow.com/homes/15-Wayne-Ave,-Oxford-MA_rb/

I’m also looking at purchasing a multi-family within the next few months – or as soon as something catches my eye.

I’m currently insuring it through USAA and I have their “recommended” policy. It’s a rebuild policy that covers me for their estimated rebuild costs. They add additional coverage automatically in case the repairs cost more than estimated. It covers loss of rent at fair market, wind and hail, and just about anything I could think of.

I was talking with a representative from Amica and they quoted me a fire policy that covered me for the same rebuild amount, but without all of the extra coverage’s. It did cover wind and hail and loss of rent, but from what I could tell, anything short of it burning to the ground and I would end up paying something out of pocket beyond the deductible.

The policy from USAA is just under $900.00 and the policy that I was quoted from Amica was just under $400.00. I know that this isn’t a ton of info, but I’m really just interest in knowing what you would do?

Do you go all out on insurance or do you take the risk?

Do you have any advice that you could share with someone new to the game?

Lessons learned?

Thanks in advance!