DP3 Insurance Coverage

[Miguel Oliviera]

Hi BP Community,

I am getting quoted on a DP3 policy for a SFR in Jacksonville, FL. Purchase price was $84k and home value is $145k. I received a quote for an annual premium of $935 for $100k of liability coverage and $3k of medical payments. My insurance broker is recommending that I get additional coverage with another carrier to get up to $300k of liability coverage.

Open to hearing your thoughts on this coverage and what should be the right amount of coverage for this house. Thank you in advance!!

[Cameron Moore]

Hi Miguel, I would recommend never doing less than $500k liability base on a Landlord Policy. However, my real advice to every investor-clients would be to always have a premises-only Umbrella policy for an extra $1 million in coverage. This is typically less than $300/yearly. People are pretty sue-happy so that protects your assets.