Landlord insurance deductible concern

[Pavan K.]

Im about to close in on my first investment property, a large Single family home . For the landlord insurance, builder finance have given their quote of 1800/yr premium with 2500$ as deductible. I checked with State farm ,since I have everything under them as of now,they gave me a quote of 1200/yr but with 1% of house value i.e 6000$ as deductible .There is no in-between,it starts from 1%, then 2%..3%.

Considering it's a new build , hoping I won't need insurance anytime soon ( fingers crossed) . Should I go in for lower yearly premium vs lower deductible? 

[Randall Alan]

@Pavan K.

Are you sure the 1,2,3% isn't a hurricane deductible?  I've never seen an "All Other Perils" deductible restricted to percentage of the policy.  But that is the norm for hurricanes in our area (Florida).  Even in Florida we have AOP coverage at $1,000, $2,500, etc.

I would be looking to another insurer if they are forcing you into a percentage on the AOP deductible.  For hurricane coverage the percentage deductible is typically done in percentages though, with 2% being the norm.

All the best!

Randy