Landlord Insurance Advice (Memphis TN)

[Casey Adams]

Hello All,

I currently just closed on my first BRRRR/rental property today and I'm trying to get everything situated as quickly as possible to get rehab under way (I don't want to hold a balance on my HELOC for very long!). I need to find landlord insurance before the property management can start and the rehab can begin.

I got a quote from a insurance company I use for my own home in CA. The quote was $1400/year when I budgeted for $900-$950/year, which will definitely hurt my bottom line. Here is what I was quoted :

$240k structure coverage + 25% ($60k) (I imagine ARV to be ~$120k-$130k)
$2500 personal property
$24k Rental coverage (I'm expecting ~$1300/month so this may be high)
$300k liability insurance (Although it's $1 difference/month for $1m)
Sump/water pump coverage
Total = $117.72

This quote included the deductions for an alarm service and fire alarms equipped throughout (Do y'all usually equip your rentals with alarm systems?)

I did not pull the trigger but I am wondering the threshold of coverage I should look for as this is my first venture.
I appreciate your time and advice on this, as I'm a rookie starting my journey

Thank you everyone that helps and any advice is appreciated!

Casey