Property Insurance - First Deal Question!

[Daniel G.]

Hi BP community,

I have my first multifamily property under contract! It is a 56 unit property located in Ennis, TX. That said, I have a question regarding insurance, I received a proposal today and would like to run this by those of you with experience! Below you'll find some of the information contained in the proposal.

Property Coverage:

Terms/Conditions: 

• special Form: Excluding Flood/ Earthquake
• Replacement Cost: Buildings & Personal Property - No coinsurance.
• Actual Loss Sustained: Loss of rents-extended business income for 90 days.
• Actual Cash Value: Applies to wind/hail claims on existing roof coverings over 15 years of age and older.

Deductibles: 

• $10,000: AOP per occurence
• $25,000: Per location, per occurence for wind/hail/ hurricane
• $10,000: Equipment breakdown
• NONE: Loss due to fire which emanates from a permanently attached cooking surface.

Exclusions: 

• Pollution & contamination, asbestos, earthquake
• Mold, mildew & fungus
• Flood is excluded - Earthquake is excluded.
• Wind/hurrica/hail/flood
• Cosmetic damages

I just realized that it is too much information to write onto a forum post - it wouldn't make much sense. But overall I get the feeling that there this insurance proposal is not very good.  If anyone would be generous enough to discuss this with me I would appreciate it a lot.

Thank you,

Daniel