Landlord Insurance Coverage Comparison

[Chris U.]

Hey everybody,

(Sorry to mods, originally posted this in the wrong forum!)

After roaming the BP Forums and blogs for the past few years, my wife and I are finally under contract for our first rental property. So fingers crossed that this one turns out to be worth our while.

I've been discussing landlord insurance with my agent, and he presented us a policy with Foremost. After being presented with "A" policy, I asked if we could strip the policy down and was presented with "B". Would like to hear opinions on either, or if we're missing something else entirely (more or less coverage, etc). Of course, we're going to discuss more in-depth with our agent, but this was the email I just got towards the end of the day. Would like additional informed opinions on the matter.

Thanks in advance!

Foremost "A" - $1494

Foremost "B" - $1157

Factors that leaned our agent towards the Foremost policy: 1) We're inheriting tenants who are graduate students, and are open to grad students renting the property in the future. 2) The other policy from Erie didn't allow for lease terms other than 12 months. At least in the first year of having this property, we're flexible to other terms.

Info on property: 2 bed 2 bath Townhome with HOA, extremely close to University & University Hospital. Roof, HVAC, Kitchen were all updated as of 2018. Likely buying for $160~. Inheriting grad school tenants, who are currently on month to month, renting slightly below what we believe can be charged. But we're open to keeping them for now, especially in this climate (still gathering all info on tenants)

[John Mocker]

Christopher,
I see 3 main differences based just on what you've posted:

1. Each quote has a different limit for the Replacement Cost. That should not happen in the same company. It happens often when comparing different companies The Replacement Cost is the estimate of how much it should cost to rebuild from the foundation up with the same kind and quality of materials. Companies use estimating programs that determine the amount that they think that cost would be. Different companies use different programs but Foremost should only have one. If $152,000 is the correct Replacement cost then it should be used for both quotes.

2. The second difference is the lack of coverage for "other structures" on the second quote. If you do not have a garage, outbuilding, etc then that makes sense. But it should not be on the first quote then.

3. The Third change is the elimination of Landlord Personal Injury. That protect the landlord for suits based on Libel, Slander, and the like. It is a coverage I would not recommend eliminating as it is an important coverage in the Landlord-Tenant Relationship.