Insurance deductible question for the Detroit area

2 Replies

@Sharron Morrow first off, congratulations on getting into real estate investing! 

In regards to your question, since this is your first investment property I would suggest a lower deductible to help protect yourself against a large (unforeseen) out of pocket expense. A good deductible would be $1,000 to start with. Most insurance companies only have deductibles on the property coverage and NOT the liability coverage. So, for example, if you have a slip and fall at your property the insurance company will be pay first dollar and there is no deductible. 

As you do more investments you can probably bump that deductible up to $2,500 or $5,000 to maximize your potential savings. I wouldn't advise doing that on your first deal as that could tie up a lot of your money that can be better used elsewhere (like buying more properties)!

Contact me should you have any additional questions and good luck!


Justin Sloan