Insurance

[Rodney Kuhl]

What type of policy do you all use for a rental property? Replacement cost or actual cash value? And why?

Also, how much do you pay monthly for insurance (I'm in Indiana)?

[Shawn Holsapple]

If the property is vacant, you will need to have a "builders risk" policy. This is usually paid all up front for 3 months at a time. This cost around $300-$400 for most homes under $50k here in Indianapolis.

Once it's occupied, you can switch to more affordable insurance paid monthly or quarterly.

I swithched my personal and all investment assets over to one local broker a few years ago to take advantage of the discounts and great service.