Landlord insurance

[Douglas T.]

I got a quote for landlord insurance and I wanted to get opinions here.  I'm converting my Chicago condo into rental property.  There is no current policy or insurance company to call or bundle services with.  This is a 1br condo that is 700 sq ft.  They said I could save about $50 by lowering these two things I've listed below.  Do you guys see anything else you'd change?  Thanks... I've never done this before.  In case you can't read the premium total, it's $276/yr.

Building Property Coverage A $70,000 - is this too much?  Another company said I should only need $45k

Liability $1,000,000 - is this too much?  The other company said I'd only need $500,000

[Jason Bott]

@Douglas T. technically, you need "improvements & betterments" coverage.  Ask to make sure this terminology is in State Farm's Building Property coverage A.

The condo will have a property policy that cover the condo building.  You are typically responsible for the "studs into the unit" or "paint into the unit".

So, your Improvements & betterments insurance limit should be how much it would cost to replace everything you can see with your eyes.  Carpet, trim, sink, cabinets, etc.

For most of my clients, this amount is $20k-$25k.  Higher is the bank needs more to colatorize your loan.