I am shopping for insurance for my rental property in Texas. I plan on getting property and causalty insurance for the replacement cost of the home. The policy also covers water damage that may occur from flood or even tenant mischief. For 130k of coverage the rate is $1055/yr. Does this seem inline with prices that other investors in Texas are paying?
Also I am getting an umbrella policy for $1 million dollars for liability at a cost of about 250/year. Is $1 million dollars enough?
I personally just get the basic fire and extended coverage. You can add on mold, loss of rents, water damage and other perils but it is too expensive in my opinion. I have found too that Farm Mutual Insurance companies off the best rates. Pioneer Farm Mutual is one that I have used in the Austin, Round Rock areas. They started out as farmers self insuring and grew into a non-profit insuring houses etc.
The $1 million dollar policy is what I have read that works for most investors. You may want to add to this as you get several hundred units. Check to see how many million dollar checks they will write per year.
I also have rental property in Texas. How much liability is included in your quote? In my shopping of umbrella policies, I had to have come across $300,000 minimium liaibility on each of my properties. While umbrella was cheap to have $300,000 liability was not. Let me what level of liability that your policy covered. If it’s $300K then it is a good quote and please let me know who your broker.
Not sure how the pricing is in Texas but $1,055 doesn’t seem out of line. You may wish to check with my friend Ed Cantu - www.edcantuinsurance.com see what he can offer.
$1,000,000 umbrella for $250 is definitely the way to go. Especially if a tenant sues you for wrongful eviction, libel or slander.
I just start my rental business as well in Texas, Fort Worth. I have my house insure for fire but I still want to have a umbrella liability insurance coverage of 1 MM as well. Anyway, I have a hard time finding a very reasonable premium for umbrella liability insurance.
The cheapest one I can find right now is $350 per house and it is only general liability not umbrella liability insurance. Someone please give me contacts of your insurance company.