Insurance on my first Rental

5 Replies

Hi BP Family,

I am trying to see what kind of insurance I can have on my first rental home(my primary). I called my insurance company hoping to just insure the outside of the house(to lower my monthly payment) but they quoted me double what I am paying now just because they have been receiving lots of claims from rented homes.

Any idea what I need to proceed in this step?  What do investors elect when they want to rent their home or properties?



I would first check with other local insurance companies.  You can find references on this forum or from other local investors. 

Are you requesting full coverage of actual-cash-value (ACV)?  The ACV quotes are much lower, but so is the coverage level.  I personally use ACV for the much lower rates.

Have you contacted Foremost Insurance? 

Hi Johnathan,

I currently have full coverage and it is a relatively new home. I am not sure if the bank will allow me to do ACV for a much lower rate.

let me check Foremost insurance and see.

Thanks for your advise.


@Asem AbuAwad There are significant differences between ACV and replacement cost. There is also something called co-insurance which is important to consider. I just sent you a PM. Give me a call if you like. I'd be more than happy to go over things with you. My info is below. 

@Asem AbuAwad Both @Anthony Lee and @Jonathan Alesso have something with the ACV. I also like the idea of looking at Foremost. They will insure properties that most companies shy away from. Working with a broker who represents multiple carriers is probably the way to go in this case. Also, think about choosing a higher dedct. to off-set a premium increase. And make sure you require that your tenants carry renters insurance and present you with a copy of the policy declarations to verify coverage is in-force.   

Hi Gerald

Great advise!! I will go with a broker to check various carriers and am planning to make the tenant have renters insurance prior to giving him the property.



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