Rental Property Insurance Policy Tuning

[Jack Jiang]

Hi fellow BPers, my question is: how should I tune the insurance policy to achieve the balance between policy premium, risk control, and out-of-pocket expenses, and what's the minimum coverage?

Context: I am closing a property this month, and I decided to spend some time understanding and tuning my insurance policy.

I did a bit of searching inside BP, and seems like most preferred low premium, low coverage, but i could not find a lot of details about how the premium is distributed between limits (reconstruction), liability and deductible. I consulted my agent, and her opinion (which is what she did) is high reconstruction limits (almost 100% market price), low liability cover, high deductible, but adds extra umbrella policy. Her take is that insurance should be used as infrequently as possible, but should cover big loss in full amount.

Fellow BPers, whats your take on this questions? Any input is greatly appreciated :)