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Miles Stanley
Pro Member
  • Realtor
  • Schertz, TX
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226
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San Antonio, TX - Appropriate type of insurance for rental house

Miles Stanley
Pro Member
  • Realtor
  • Schertz, TX
Posted Jun 9 2017, 13:34

OK, not really sure of the question to ask here.

We are on day 3 of our option period and i am trying to get insurance quotes done for this rental house i am planning to fix up and rent (SFR).  Now i own a primary residence and have a run-o'-the-mill homeowners policy, but i wasn't 100% sure about what 'typical' policies and coverage were obtained for rental homes.

My wife was trying to get a quote online yesterday and the house valuation to rebuild came in at like $204k, but the ARV for the area is no more than $140k.  This doesn't add up for me since i can't imagine spending $204k to rebuild a house where the market values are so much lower.  Are we looking at too much coverage possibly?

i see a lot of monthly insurance rates (from lender, other investors) at around $65 a month, but the estimate we were given from this online system was like double that.

It's our first one, so I'm in the middle of the option period frenzy to get everything done in time and i wanted to be sure I'm thinking about about this right. 

I'm curious if any local investors (if location has anything to do with it...i'm guessing it does) would mind sharing what types of policies they get for their rental houses.

Thanks for the input.

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