Weighing options with insurance on rental property (Houston Area)

[Cory LaChance]

Just got my first BRRRR property under contract. The property is in southern Brazoria County of Texas, which has a red hot market going on right now. Anyways, I received a few a quotes for insurance and there are a few options. I'd like BP's opinion on the pro's and con's of the options received.

Here is the response to my question of increasing the deductible to lower the premium.

Yes, increased deductible would be one way to lower. Also, you can go down to 85% of the replacement cost on the wind. Lastly, there is a coverage called "Increased Cost of Construction" that allows for an additional percentage of the building limit in order to pay for the increased cost to comply with building ordinances and laws. (If there's damage to the home, the policy will pay to give you back what you had, but you have to rebuild/repair to the current code and there's often an increased cost to do that. That's what this is for.) I quoted 25% but you can do, 5%, 10%, 15% or 25%. All of that can add up so I'll get you some options.

From what I've read, it sounds like Texas has higher that average insurance costs due especially on the coast. 

What type of insurance do others use on the Texas coast.

Looking forward to hearing some responses!