What to Cover (rental)?

[Jessica Hollingsworth]

What all do I need to cover on insurance on my landlord policy? 

I have a policy but I feel like it’s too much?

[Owen Rosen]

Quote from @Bob S.:

Quote from @Owen Rosen:

Quote from @Bob S.:

Quote from @Owen Rosen:

Quote from @Bob S.:

Quote from @Jessica Hollingsworth:

What all do I need to cover on insurance on my landlord policy? 

I have a policy but I feel like it’s too much?

 the cost of your investment that's it, of course basic liability You ins should not be more then 1k 

 Huh?  Only insured what you paid?  Insurance should not cost more than $1000?  For what?  For every property in every market?  I don't think so.

 YES only your investment, your not going to rebuild if total loss.  Sorry for some reason I assumed you would be the 100k all in price, if so yes INS is 1kish, 

What if your tenant has a kitchen fire and you need to rebuild/remediate? With actual cash value you'll get a depreciated claim payout and much of the expense might not be covered. Or are you just going to tear it down and move on?

Total losses are rare. My scenario isn't. I don't think your advice is suitable for many investors but everything is case by case and your one size fits all advice could lead to a lot of issues.

In 10 years doing about 500 deals in the Cleveland markets, we never had one claim. Also we only get ins for the total all in on the props, 75- 100k, its about 850 a year. If there is a fire in the kitchen sure insurance will cover. If its a total lose, get our money back and move on. Not going to rebuild. 
ALL THE BEST 

If you aren't insuring replacement cost, insurance probably won't cover it as you say.
Most properties are not 75-100k. Yours might be but that's uncommon overall.
If you've never had a claim that's great but it's not really relevant to the discussion.
Do you understand how partial losses work and what loss settlement provisions you have on your policies? 
These are rhetorical questions but newer investors should speak with a trustworthy agent that has your back when making these decisions.