What's the best insurance for rental property ?

5 Replies

Hi, new investor here. Hoping I could get some help on some insurance. Like what to look for when i am shopping around , and good and bad companies to look out for.

My property is located in Detroit ,MI

I currently have Allstate landlord insurance

Do you guys have any suggestions?

Thanks !!

@Michael Lloyd , the insurance companies may or may not matter. What matters is that you are true in providing information to the insurance, for example, if you are renting to students, the insurance will be higher than a family, if your tenants have a dog, the breed is very important, if the house has a fireplace, you want to declare it.

Why is this important? The moment that you have to file a claim with the insurance company, the first thing they will look for is how to get out of paying you, so they will look for flows in your information.

Other than that, just shop around to see which carrier gives you the best price for the coverage that you want.

@Michael Lloyd  

LTR got it!

Insurance companies can be very tricky to deal with and like banks their terms can very wildly and be confusing to understand. As @Nik Corbaxhi mentioned you want to provided accurate info. The instinct to not disclose information is high in most people but not recommended. 

I'm not an insurance expert but you will find many here on BP. There are a couple of points when buying insurance I look for. Is the insurance covering for 'replacement cost' or 'actual cash value' very specific terms you should become familiar with. Also I pay attention exclusions and limits to certain high risk high probability events like sewage back up. 

I also prefer higher medical coverage for tenants than the default $5K. Take my post with a grain of salt. shop around and don't be afraid to ask questions of the agents and read the 10 plus page policy before you buy.

To answer your question: I use USAA insurance whenever I can.