Rental Property Coverage

[Michael Sarrail]

New to the game and buying my first rental property. SFH in Independence, Missouri
I would like to know what type of coverage you buy for your rentals.

Replacement cost or actual value? High or low deductible? Basic or more? What add-ons if any?

Again, just starting out so please excuse my very basic if not straight up ignorant questions.

Thanks in advance

[Steve R.]

Hi Michael,

I usually get insurance on the cash value. It is usually much cheaper than replacement cost depending on the house and the insurance company. If I need to file a claim for a total loss I will just take the money and buy a similar property elsewhere. I keep my deductible at $1000 and I up the liability from the standard $300k to $500k. My cost is usually between $500-550 per property.