insurance quote for first investment property

5 Replies

I am in the process of getting my first investment property and I think I have a decent insurance quote can someone in the florida area review it for me. I have posted it below thanks.  

Total With Flood Coverage:

$567.00

Includes Flood Premium: $100.00

Total Without Flood

Coverage: $467.00

Hurricane Premium: $147

Non-Hurricane Premium: $393

Nonrefundable Assessments and Fees: MGA Fee: $25

EMPA Fee: $2

Geocoding Information

Responding Fire District: JACKSONVILLE

Protection Class: 01

BCEG: 99

Distance To Coast: 99,500.00

General Risk Information

Construction Type: Masonry 100%

Year Built: 1952

Fire Hydrant Within 1,000 Feet of Home? Yes

Usage: Rental Only

Coverage Information

Primary Coverages

Coverage L (Premises Liability): $100,000

Coverage M (Medical Payments): $1,000

Limited Fungi Coverage Section I: $10,000

Limited Fungi Coverage Section II: $50,000

Coverage A (Dwelling): $100,000

Coverage B (Other Structure): 2% of Coverage A

Coverage C (Personal Property): Excluded

Coverage D & E (Additional Living Expense & Fair Rental

Value): $10,000

Water Damage Coverage: Limited

Deductibles

All Other Perils (AOP) Deductible: $1,000 Hurricane Deductible: $2,000 (2% of Cov A)

Optional Coverages

Ordinance or Law Coverage: 25% of Cov A

Loss Assessment Coverage: $1,000

Flood & Water Back Up Coverage: Yes

Roof Loss Settlement: Replacement Cost

Identity Theft Coverage: Included

This looks pretty decent. I would suggest the following:

  • Remove identity theft coverage. This should be covered on your primary residence policy and is redundant here.
  • $100,000 liability coverage is low. I always encourage clients to get at least $300,000 so you can qualify for an umbrella policy if needed. $500,000 or $1 million would be even better. 
  • Limited water damage coverage caps water damage to $10k - anything beyond that is on you. I always look for full water damage (coverage up to your dwelling limit) but sometimes it isn't cost efficient. 

I hope that helps!

@Dimitri Paspalaris  The 2 things that stick out for me are your liability and medical payments coverages.  They are too low.  Liability should be at least $300,000 and medical at least $3000 ($5000 is better).  The cost to increase these coverages is very low - probably less than $40.

I would also add sewer and drain backup coverage (terms vary: water backup and sump discharge).  Water spreads very quickly and can cost thousands to repair.  Get some peace of mind for about $25.  Good luck!

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Completely agree with everything that has been said previously.  I've noticed a lot of insurance agents are willing to give lower coverage to try and "win" your business.  It's much better to spend the extra money and get the proper protection.  Good Luck!