Apartment Insurance: Am I Over Insured?

[Chris Burke]

I have a 8-unit apartment building in Wisconsin that I purchased in 2018.  When I purchased the building I did not shop around too much for insurance.  I simply called around local insurance companies and took the first one that returned my call. I prioritized closing my first apartment deal over shopping for a competitive rate and, honestly, I had no idea what kind of coverage I needed.  Well, now it is 2021, and I still don't know what kind of coverage I need.  The cost of my current insurance is 2.2% of my purchase price and seems to be eating up a lot of my potential profit.  The policy seems to cover so much that could go wrong, but I feel like it is just too much.  I'm looking to renegotiate my insurance with the current provider or, if necessary, find a new one.

Few questions to you other small apartment investors out there:

1. 1. What should the insurance cover minimally?
2. 2. What are good ideas to have, but not a necessity?
3. 3. What items should I avoid completely?
4. 4. What should the ballpark cost be?