Help! What landlord insurance policy terms are ESSENTIAL for my 1st rental asset?

[Claudia Stewart]

Hello BP Community! I am in escrow on my first out-of-state rental property in northern Texas and the next step in the process is to get landlord insurance. My question for you more seasoned investors is, what policy terms must I make sure are part of the policy I end up selecting to ensure maximum protection of my asset?

For added context, the property is a SFH that I will be renting to a long-term tenant.

In advance, I appreciate your time and willingness to share your expertise with a budding investor!

[Greg Scott]

I always got a DP3 policy (ask your broker) with $500K liability on my rentals, topped off by a $2M liability umbrella off my personal residence.

[Owen Rosen]

Quote from @Claudia Stewart:

Hello BP Community! I am in escrow on my first out-of-state rental property in northern Texas and the next step in the process is to get landlord insurance. My question for you more seasoned investors is, what policy terms must I make sure are part of the policy I end up selecting to ensure maximum protection of my asset?

For added context, the property is a SFH that I will be renting to a long-term tenant.

In advance, I appreciate your time and willingness to share your expertise with a budding investor!

 Replacement cost. Special form. Proper liability coverage. Proper loss of rent.

[Diego A.]

Hi @Claudia Stewart I would recommend the same than Greg, for first time investors.

That will always depend on the risk tolerance that you have. Have you talked with your insurance broker? 

Insurances are getting crazy high now, so you have to shop around a lot to get a good deal and it is one breaking point to generate cash flow.