1st Investment Property in Contract - Advice with Insurance

[Angela Pipitone]

Hey all,

I have my 1st property under contract, it will be a rental (it is currently vacant). I'm trying to make a decision between a landlord policy or an umbrella policy and I'm leaning towards landlord policy. My insurance agent let me know I would have to raise all of my coverages in order to even get an umbrella policy (I have 2 cars and a primary residence that I pay state minimums on in insurance). I don't have much assets other then my house, my car is a 2011 and a 2010, not much value, there's about 20k equity in my primary residence and there will be 20k equity in my investment house. I guess overall I don't see the value in getting the umbrella, I feel like that's for more established investors with a higher net worth. The difference would be about $75 a month more for the umbrella, which would eat into my cash flow on the property. It is a rough neighborhood that I'm renting in.

I know ultimately this is a personal decision, but any experienced investors that could throw some thoughts out there so I can do some research, look at it from a different point of view and/or help me come to a decision would be greatly appreciated!!