00:00The three big buckets of the policy that you need to care about the most are, number one, the
00:05dwelling coverage. The dwelling coverage is you'll see some number and it's always going to be in
00:10hundreds of thousands. It's going to be how much money is the most that the insurance company
00:15is going to write you a check for when your property burns to the ground. Number two are your deductibles.
00:20And this is a place where people can save a lot of money. If you're a person who is used to
00:25choosing the $500 deductible option on your car insurance and then you go to buy property.
00:30insurance and you say, I want the $500 deductible that is going to cost you so much money.
00:35And for an insurance company, every time a claim is filed, it's like $1,000. So they don't want to
00:40deal with small claims. Property insurance is there for the big stuff. $30,000 plus.
00:45And so the way to get your insurance premium down the most is to buy a...
00:50$5,000 or $10,000 deductible. The third one is liability. So liability is $300...
00:55$300,000 is like the lowest you'll ever see. That's nothing. Typically speaking, you're looking at folks going up to a million...
01:00is what they want to get because the way that it works when you get sued as a property owner, is there a...
01:05you're immediately going to figure out who's got money. And if you've got money as an owner, they're going to come after everything that you...
01:10have and you want to have an insurance on the liability side that is...
01:15about as much money as you have in net worth. And so if you've got three or four million...
01:20in net worth across all your stuff, carrying three to four million in liability coverage is about right.
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