What size deductible do you use?

[Steve Miller]

Hi Everyone - this happens to be my first post on BP, excited to be part of the forums.

I've been investing for about a year and have purchased 4 units in metro Denver at an average cost of around 150k/unit. I had a thought for the first time as I was setting up insurance policy for a duplex (units 3&4). Is there any school of thought around the level of deductible you choose (obviously this varies based on the size and specifics of the property, but basically high vs. low on the spectrum to deductible:total annual premium)? I have traditionally chosen the lowest deductible and pay a higher premium monthly for this, but I wonder if I'm leaving money on the table. I've yet to have a major incident (but these are pretty common in Colorado, hail damage being a big one) and like to think I keep respectable reserves (10k/unit liquid + whatever is being saved for the next property at any given time). Am I leaving money on the table or being safe by keeping my deductibles low?

[Account Closed]

@Steve Miller Welcome to BP! 

I think this is one of those things that has no right answer.  I have typically taken the opposite approach and chosen a high deductible in order to minimize expenses.  If you have solid reserves and can afford to take a larger hit on the deductible then I think that route makes sense.  If you were buying your first deal and just getting started building your reserve funds then a low deductible could make a ton of sense.