Property insurance

[Kevin Smith]

I was just wondering, what type of insurance you guys carry on your rental properties. I'm pretty sure i have a regular homeowners policy on average for the 4 properties i own i pay about 1200 each a year for insurance. Also would you guys suggest escrowing taxes and ins into mortgage pymnt,or paying them seperate.

[Jon Holdman]

You absolutely need to get landlord insurance. If you just have homeowners, that is, insurance for an owner occupied property, there's a real possibility the insurance company will deny a claim if there are tenants in the property. Further, landlord insurance provides some liability protection and gives you loss of rent insurance if damage leaves the place unrentable.

I prefer to pay taxes and insurance myself, but lenders typically charge extra for that privilege.