What is your deductible on your rental insurance?

[spark1]

Hi All,

• what is your deductible on home insurance. I mean rental of course. I have a single and duplexes with $500 deductible. Should I move up to $1,000 to save on premium?Those who with Meloche Monnex, do you have a bronze or silver package? What is your suggestion for rentals, does it worth to pay for silver?

thank you,
spark

 

[bizaro86]

Mine is $1000. I would never make an insurance claim for something between 500-1000 anyway, because the money from the claim would get eaten up over time on increased premiums. I actually requested a higher deductible than $1000, to save even more money, but was told $1000 was as high as they offer.

Michael

QUOTE (spark1 @ Jul 15 2010, 08:27 AM) Hi All,

• what is your deductible on home insurance. I mean rental of course. I have a single and duplexes with $500 deductible. Should I move up to $1,000 to save on premium?Those who with Meloche Monnex, do you have a bronze or silver package? What is your suggestion for rentals, does it worth to pay for silver?

thank you,
spark

 

[brentdavies]

My deductable is $5000, as I never put in a claim unless it is for big dollars. Fire, Flood, etc. The minor stuff is cover under general maintenace. And I get great rates on my insurance.

Ask the property owners that had thier properties damaged from the big explosion in North Edmonton in the last month.
The insurance is looking at either rebuild, major repairs or knock it down for 15 plus houses. One of our investors, and a friend are 2 of the 15 affected. It may be a year or more before they can move back in. OR before the property can be rented again. The insurance is covering the rental payments.

It more important to read the EXCLUSIONS page than the cost of the policy.

 

[spark1]

Brent and Michael,
Thank you very much for your responses. That is exactly what I was thinking, I will move up my deductible.

spark

 

[nubiwan]

I wanted to bump this thread as I am interested to see what others on my situation are doing, and what the consensus is. I own 5 homes and my insurance currently is around $670 a month for all properties. $500 deductible. I can reduce this to $576 if I go with a $1000 deductitble. If I had a $2500 deductible, then my rate goes to $515.



Interested to hear comments on what others do, and why.



Thanks All

 

[bizaro86]

[quote user=nubiwan]I wanted to bump this thread as I am interested to see what others on my situation are doing, and what the consensus is. I own 5 homes and my insurance currently is around $670 a month for all properties. $500 deductible. I can reduce this to $576 if I go with a $1000 deductitble. If I had a $2500 deductible, then my rate goes to $515.



Interested to hear comments on what others do, and why.





Assuming you could come up with the 2500 from a reserve fund, I'd go with the highest number.



Let's say you have a big claim, and have to pay $2500. You would have paid $500 yourself before, so the extra net cost to you is $2000. However, you can offset that with the premium savings. $670-$515=$155.



So it will take ~13 months for you to save enough on premiums to cover the higher deductible. ($2000/$155=12.9)



If you're making a claim less than every 13 months, it pays out to take the higher deductible.



If you're making a claim more than every 13 months, you should do a root cause failure analysis of what is going wrong with your properties, because that's too often for a portfolio of 5 properties. (IMO)



Regards,



Michael