How much should I insure my first rental property?

[Victor N.]

Hi all, 

Just entered a contract for my first rental unit. A SFH priced at 252K, 4 beds, 2 bathrooms and 1 garage. About 1500 sqf and it's a new build. How much insurance should I buy for this? Any general parameters? Thanks!

[JD Martin]

Quote from @Victor N.:

Hi all, 

Just entered a contract for my first rental unit. A SFH priced at 252K, 4 beds, 2 bathrooms and 1 garage. About 1500 sqf and it's a new build. How much insurance should I buy for this? Any general parameters? Thanks!

As far as damage? Whatever you're comfortable with as far as deductible. I max out liability and keep everything under an umbrella policy because that's really where you want protection. Most insurers are going to either have actual cash value or replacement value; the latter is more expensive.