Insurance for Rental Property

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Insurance for Rental Property

Sylvester Hardison
Rental Property Investor · CA · Member since 2024 · 32 posts · 18 votes

Hello,

  I am new to rental property investing, and currently in escrow for my first property. I am looking for any suggestions of where to start looking for reliable rental property insurance. Any suggestions please send them my way. Thanks!

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Daniel Grabowski
Member since 2022 · 3 posts · 2 votes
2y

I agree with Steadily. All digital platform can push out quotes and multiple quotes very quickly. One thing to note when comparing quotes (I would recommend getting a couple). Make sure it is an apples-to-apples comparison. Ask about replacement cost versus Actual Cost Value. This means that many insurers depreciate the cost of the asset and subtract that from the reimbursement for a claim as compared to just replacing the full cost. It is a preference and there is a cost associated with this. (Steadily does replacement cost which does not include depreciation).

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    • Glen Wiley
      Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes
      2y

      Get insurance lined up well before closing so now would be a good time.

      You need a landlord policy, slightly different (and usually cheaper) than a normal homeowners policy.

      I have been super happy with USAA for our rentals - if you or your parents served then you can get USAA, they are set up to work with landlords.

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    • Owen RosenBusiness Member
      Professional · Clinton Township, MI · Member since 2015 · 687 posts · 259 votes
      2y

      I'd strongly recommend working with a broker that has access to multiple solutions rather than any captive carrier.

      Royal Oath Insurance Group4.9205 Reviews
      WebsiteView Page
      1Reply
    • Melissa Title
      Investor · Daytona Beach, FL · Member since 2023 · 14 posts · 2 votes
      2y

      Definitely email some brokers. I usually google "best insurance" in XX city to start the search for best reviews, and email several to make an informed decision. Keep in mind you can also tweak some of the coverage amounts they send you, and you can sometimes get discounts for certain things like weather resistant windows, security features, fire alarm, etc. 

      My current policies are SafeCo (through Steadily broker), Southern Oak (through Integrity Insurance broker), and Mercury (through SureInsure Insurance Agency).

      Best of luck!!

      1Reply
    • Alexandra Reeves
      Member since 2024 · 12 posts · 5 votes
      2y

      You should try Steadily, they are a new carrier to the market and just quoted my property.  

      1Reply
    • Alecia LovelessPro Member
      Member since 2019 · 3k+ posts · 2k+ votes
      2y

      @Sylvester Hardison Contact a couple independent insurance companies in the town the property is located in and get quotes. They’ll have the best variety of options for coverage for you.

      1Reply
    • Daniel Grabowski
      Member since 2022 · 3 posts · 2 votes
      2y

      I agree with Steadily. All digital platform can push out quotes and multiple quotes very quickly. One thing to note when comparing quotes (I would recommend getting a couple). Make sure it is an apples-to-apples comparison. Ask about replacement cost versus Actual Cost Value. This means that many insurers depreciate the cost of the asset and subtract that from the reimbursement for a claim as compared to just replacing the full cost. It is a preference and there is a cost associated with this. (Steadily does replacement cost which does not include depreciation).

        2Reply
      • Costin I.
        Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
        2y

        Steadily might be a good policy for a place where nothing happens or one for total catastrophic insurance, but not for something in between. See my experience with them here. 

        And their roof loss settlement is "variable by roof age", not actual replacement cost, nor depreciation adjusted (most insurances will hold the depreciation portion of a claim till the repair is done and only then release the funds).

        Make sure you compare apples to apples when shopping around, pay attention to what they give you for "free", what deductibles apply and when exactly you can get coverage from the insurance and to what limits. Steadily failed the test for us.

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