Am I over-insured? Wasting my money or protecting my assets?

[Adam Hurst]

I want to be more focused on cash flow. I am in the process of purchasing my 8th investment property. Is insurance something you should look at when you are trying to maximize cash flow? I heard a guest say he only covers them for cash value and it saves him tons of money which increases his cash flow. Of course, I am being told/sold to protect myself. I will give a few examples of my coverages. They are all similar because they were all set up/sold to me by the same person. I use a company that rhymes with Great Harm and my wife's uncle is our agent. 

House 1

Value $175,000      Owed $124,000

Rent Received $1,425      Payment $1000 <---- Don't kill me on this, I know it's not a great one.

Coverage - Dwelling $178700, Dwelling Extension $17870 Personal Property $8935 Business Liability $1,000,000 Annual Aggregate $2,000,000 Medical Payments $5,000 Deductible 1% 

House 2

Value $145,000     Owed $69,500

Rent Received $1200    Payment $620  <-----Getting a little smarter

Coverage $110,800, Dwelling Limit $11,080, Personal Property $16,620, Business Liability $300,000, Annual Aggregate $600,000, Medical Payments $5,000, Deductible $1,000.

Thanks for any comments or insights. Always looking to connect with people in the Norman, Oklahoma area.

[Adam Hurst]

@Colleen F. I will ask that question. $1,000,000 seems like a lot on one property or maybe not.