The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: TheOldestYoungMan on May 09, 2016, 02:43:52 PM
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I decided to start building my real estate empire sometime soon. It is something I've thought about doing once FIRE, but in the spirit of "why not now"...
One question, what all insurance do you guys get? I'm going to be starting off with single family homes, maybe duplexes. I'll have insurance for the physical property I own, flood/fire/windstorm etc, but is there some other type that is recommended as well? Like, crazy tenant insurance or liability or something?
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Get a landlord's policy. I'm not aware of any company that will insure you against damage caused by a tenant. The landlord's policy generally includes several hundred thousand in liability coverage for you.
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YMMV, but I've never felt bad about paying $20/mo for $1M in personal umbrella coverage. I got it right when I got my real estate license and before I bought my first rental. The properties themselves are insured in the LLC's name (liability/damage/etc), but that added layer for me is important since I occasionally stop in.
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Landlord Policies are pretty standard. All the insurance companies provide them. You should have at least 6 months of expenses in a savings account in case something goes wrong. I believe this should give you the ability to carry a higher deductible policy of $5000 or more, which should reduce your rate.