Multi-family insurance question

[Alyssa Weber]

Hello! I am looking for some help in reviewing insurance quotes for a 6-plex property I am under contract for. I have shopped around for a couple of providers, and the difference between the quotes have been quite significant. I have landed on one provider that has worked with me on a couple of iterations of my insurance quote.

Here is the info:

• I am under contract for the property at $340K, pending appraisal this week.
• The original quotes I got back were for replacement value of $550K of the property, with a $1K deductible.
• Equipment breakdown, sewer/pump coverage, business income coverage, and business personal property are all covered.
• The original quote ended up being much more than I had budgeted (~$450/month premium), so I asked the broker if he could get us down closer to ~$300/month.
• In order to get the premium down, he raised the deductible to $5K, and lowered the replacement value to $415K.

My main question is: how important is it to have the higher replacement value covered? $550K seems really high and unnecessary, but also don't want to make a poor decision in case something happens.

I think I am going to ask for a version of the quote keeping the replacement value at $415K, but lowering the deductible to $1K instead of $5K. Any other recommendations to get the premium down without sacrificing too much coverage?

Thank you for your help!