Insurance for Rental Property

[Dimitri Paspalaris]

Is this too cheap for rental property insurance and does the dwelling need to go up? The cost of the property is 160k.

$537.00

12 Month Term

$75,000 Dwelling

$300,000 Personal Liability

$6,000 Personal Property

$2,000 Medical Payments

Loss of Use: $2,400

$500 All Peril Deductible

- Loss Assessment
- Water Back-up
- Special Coverage
- Ordinance or Law 25%

[Chris London]

Dwelling coverage is usually determined by the insurance company and is typically based on square feet. Don't confuse what you paid for your house with the cost to rebuild.

Liability coverage is what I am most concerned about for my properties. IMO, It's more likely someone is going to sue me for a slip and fall or a tenants dog biting the mailman and they go after me than the house burning to the ground and needing to be rebuilt (but I'm covered for that too). If you have a lot of personal assets look into additional ways to protect yourself like an LLC and/or an umbrella policy.

Finally, play with the coverage, you might be surprised how little your premium actually goes up for large increases in coverage.