I am buying my first rental property in the south suburbs of Chicago. I was just wondering what companies others are using and what there premiums costs? It is a sfh 4bd 2ba ranch house. 1425sqft. Since it is my first property I don't want to get gouged on prices. Is it a good idea to get a higher liability on the property as well? Any input would be greatly appreciated. Thanks in advance.
Hey Eric, I would suggest getting a quote to add the rental as a second location on your existing home insurance policy (be sure to disclose that this home is a rented dwelling). I would also call a few local insurance brokers as they have access to many different markets and pricing will vary. I would also suggest requesting coverage on a Replacement Cost basis and include Rental Income coverage based on the amount of rent you are bringing in. Ask for the cost difference on the added liability coverage - generally it is not that much to increase this limit. Lastly, I would suggest including in your lease that the tenants are required to carry Tenant Insurance through the term of the lease.
All the best!
There are many A rated carriers that write coverage in the South burbs of Chicago. I'd be happy to talk through your specific scenario to give you an idea of the different ways you can structure your coverage, as well as discuss any potential claim questions you may have. Just DM me if interested.
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