Insurance coverage for rental properties

[Toby Khan]

Hey guys-received this info from a potential insurance agent (I have not looked at this deep level on insurance policies before), Any thoughts or opinions on what you nice people use when it comes to your rentals would be highly appreciated-

The proposal may be adjusted for coverage such as;1. Dwelling limits - the amount provided is system generated - calculated by sqft and building type/material. You may want/need more or less coverage for replacement cost depending on the value that you would like. Let's discuss this.2. DP3, DP2, DP1 type of policy - the quote provided is a DP3 policy which means it provides the broadest coverage when it comes to causes of loss. A DP2 and DP1 policy provides less coverage and would mean that the losses would need to fall within a certain type to be covered. This type of policy may also not provide 'loss of rents' or loss of income to you if your tenant is not able to live in the property due to a covered loss. Some agents like to provide this coverage because the premium is less but it may not pay out when you have a loss. We could address your concerns and if this fits your needs we can make adjustments and lower your premium. 3. Carrier - When we spoke it seems that the best fit for your needs was Travelers. We do have other carriers that we can consider as well. The only one that would not work would be State Auto. State Auto is the company that I quoted the other locations with and are competitive. State Auto no longer insures quadplexes, they only insure single homes and duplexes only. They do have competitive rates and are great for the other properties but not your new quadplex. 4. Coverage adjustments also apply to the other locations if you would like more competitive rates. We can make slight adjustments to the proposals from State Auto so that you can be more profitable with your investments.

Toby