First SFR and I need to be sure what to include in insurance policy

[Juan Rodriguez]

Hi All,

I'm closing my very first SFR in Detroit now I need to buy the insurance policy for a 5/2 house. Company sent me quotation per $130/Month but I understand for some investor it could be around $70 . So what are the MINIMUM requirements for an insurance policy for a rental house? Please some advice I appreciate.

[Wyatt Seidel]

Quote from @Greg Scott:

Your lender can tell you what the minimum requirements are to keep your loan in good standing.

Personally, I wouldn't go cheap on insurance.  I've had a property hit by a fire and another a tornado.  I've received more in claims than I've paid in premiums.  If I had gone for cheap insurance, it would have been devastating.

For a SFR, I'd get a DP3 policy.

^^ I completely agree with this statement. Your agent should and lender should give you that information but don’t skimp out. My wife and I just recently had to file a claim for a flooded kitchen on our duplex and we ended up get everything fix and mitigated and we’re able to pocket money. Don’t go cheap because it can save your butt in the end if something goes wrong.