The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: FrugalSaver on February 04, 2017, 09:38:51 PM
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How do you determine how much is enough?
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Enough to break even. That is on the loss of property. My policy is for 80% of rebuild cost. I want less but no company will sell me less.
Enough to not lose your personal assets in the event of a liability claim. That depends on you. Shop around for best rates and coverage. It usually cost very little to boost your coverage to the next level (same for full coverage auto). I have $500,00 liability. I don't have an umbrella policy because it is less expensive for me to cover two houses separately.
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Each property insured for replacement value.
Umbrella policy for $2M via AICPA's insurance carrier. (Because wife is a CPA member)
Unlimited properties via AICPA.
Previously had GEICO Umbrella, but can only have 4 rental properties.
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Each property insured for replacement value and $5m umbrella policy. For me enough is enough when the worst possible scenario wouldn't be a life/stash destroying situation.
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Each property insured for replacement value and $5m umbrella policy. For me enough is enough when the worst possible scenario wouldn't be a life/stash destroying situation.
what is this costing you?
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Each property insured for replacement value.
Umbrella policy for $2M via AICPA's insurance carrier. (Because wife is a CPA member)
Unlimited properties via AICPA.
Previously had GEICO Umbrella, but can only have 4 rental properties.
What did the GEICO umbrella policy cost you?
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what is this costing you?
~$100/yr for each $1m in umbrella coverage. ~$0.75/sqft per year for replacement value coverage. Both through State Farm.
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Umbrella is cheap, I think I have 2 million for a few hundred bucks and it covers everything I own.
I also have heard that umbrella is one of the most profitable types for insurance companies because it is so rarely used.
That being said it helps me sleep at night for a few hundred bucks.