Insurance Premiums

[Tony Castronovo]

What tips do you have for keeping insurance premiums low without comprising too much on coverage?  Do you insure for Actual Cash Value (ACV) vs Replacement Cost Value (RCV)?  Is it typical to require 6 months of vacancy coverage (or builders risk for renovations)?

[Kevin Romines]

@Tony Castronovo I would take out a vacant / rehab policy with Foremost (not to be confused with a builders risk policy) this is a much better, more comprehensive policy and it tends to be less expensive. If your going to have escrows and the lender pays the bill for the year up front, then when you switch to the landlords policy, Foremost will refund the remainder of the unused premium at that time.

When you switch to the landlord policy, the new company or even Foremost (who also has landlord policies) will send a bill to your lender. You lender will pay that bill and get the refund from the previous company. Don't forget to cancel the old policy once the new one is in effect. That's the basic flow of things.