How much landlord insurance do you have on your properties?

[Jessica G.]

I got my first property under contract (woohoo!) So how much landlord insurance is really necessary? Do the experienced landlords out there recommend being more conservative and getting more coverage or going with a more basic policy (--> more cash flow)? I appreciate any insight!

[Mike McCarthy]

I wouldn’t skimp on limits, and I always recommend an umbrella policy as well.

That said, where you can save some money is with your deductible. If you’re living sort of rent check to rent check, you may want a $500 deductible so you don’t have to dig into your pocket for a big claim.

But if you have some money saved, opt for a $1,000 or $2500 deductible. You’re probably not going to call the insurance company for a $1800 plumbing repair, and the higher deductible will mean lower monthly cost.

If you’re really set, maybe a higher deductible is even better. Though I might be concerned about a multiple-loss situation.