Investor · Rota, Spain · Member since 2019 · 156 posts · 68 votes
Do yal pay a higher deductible for a better rate on insurance and what rates and deductibles are yal paying? I am trying to shop around and see what would be the best insurance quotes. Thanks for the help.
Real Estate Coach · Charlotte, NC · Member since 2016 · 399 posts · 341 votes
6y
@Jason Bott is that nationwide or more specific to Milwaukee area? I'm playing with the deductible on a new property now but now want to re-evaluate some of my previous policies...
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
6y
@Patrick Menefee that is nationally. There are a lot of little nuisance claims that fall in between $1,000 and $2,500 mark that the insurance carriers need to charge for.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
I thought i was saving money (being a smart investor) by having a 5k deductible.... well i had a water damage loss in a rental and that extra 2500 out of my pocket ate up my income for that unit pretty fast! So i inquired and changing my deductible tp 2,500 would cost about $50/year.
So, i would recommend a 2500 deductible, but use your insurance for large losses, not anything over 2500 since number and cost of claims paid can affect your pricing.
Investor · Rota, Spain · Member since 2019 · 156 posts · 68 votes
6y
Thank you all for the advice. In addition, if the town home has a master policy for the outside of the property should I make the coverage A dwelling the same as the purchase price or 75k since I am responsible for only the interior of the property. I am trying not to overpay on this property. Thanks for all of the help
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
@Dimitri Paspalaris ask your insurance broker to help ensure you have the appropriate coverage. Or, the HOA may have a specific requirement for insurance.
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
6y
Dimitri,
If this is a townhouse condo unit, the amount of coverage A would be based on what parts of the building are your responsibility to insure. The description of the unit in the bylaws will give you a lot of the info. From that info you can figure what it would take to replace those items (sheet rock, paint, cabinets, fixtures, etc. might be your responsibility)
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
6y
@Dimitri Paspalaris That question is a bit loaded. Only because I have some cash policies and some replacement cost policies. I also have different endorsments on many of them. So a bit more understanding of what sort of policy cash or replacement wouild be helpful. Despite that fact, I subscribe to paying a higher deductible to lower the overal cost of the policy. I'm of the mindset that claims are reserved for total losses or majore repairs upward of 25-30% of the cost of property. There are not many things that would cause this kind of loss in my market so a higher deductible would make sense for me. I've had a total loss on a rental once before. I payd $20K with an $85K cash policy. Insurance company cashed me out 100% but kept 20% to send to the county as the property needed to be razed.