newbie landlord - insurance question
Hi ,
Just finished reading Brandon Turner's book on rental property investing and joined the biggerpockets community.
I am buying a 2-bed condo unit in Medford,MA 02155. Market price for similar properties is ~$500k. Its needs some work, so i can buy below market rate and could spend money upgrading to get closer to market rate. Property is rented out. I am trying to figure out what kind of condo insurance policy should i buy. I am completely newbie in real-estate investing. Master policy is “all-in” and master policy deductible is $10,000.I have received a condo insurance quote as follows:
* Dwelling, $10,000 liability coverage (DO i need to get only $10,000 coverage given the master policy or should i get a higher coverage? how much should be good coverage?)
* Other structures , $0
* Personal Property $2000
* Fair Rental Value , $18,000
* Additional Living Expenses, $0
* Personal Liability $500,000
* Medical Payments $5000
* Annual premium $548
What should i consider in terms of additional new coverage items or increasing the current coverage. I dont mind paying a bit more in insurance to get higher coverage.
I would likely push for a new quote for higher personal liability.
Its an older unit and i would likely upgrade to new kitchen and get some work done upgrading bathroom , flooring etc to attract better quality tenants and get market rent (currently its at $200-$300/month below market given poor condition). Is there a specific policy cover that i should be pushing for future improvements that i plan to do?
My main concern is whether that dwelling coverage is enough and whether the provided coverage items are good enough when i need them!
Insurance agent tell me that she is too busy to talk over phone so just email her with questions. I guess it means I should find another insurance agent that value my business more.
I am struggling to read and understand this policy (image attached). fair rental value coverage Fire =40, All Perils=38. and similar line items in improvements columns $10,000 and $50,000 on loss assessment property coverage.
Protection line says local fire alarm or smoke detector, deadbolt , fire extinguisher. Do I need to provide Fire Extinguisher if it's not present in the property!
Apologies that some of this might be too basic for you guys. I hope to learn and catchup soon. Many thanks in advance for your answers.
Many thanks.
Jonty