A cheaper insurance quote? Check the deductible before you refinance.

A fresh reason to review the insurance line

Zillow's October 22, 2026 homeownership-cost analysis reports that homeowners insurance premiums rose 54% over five years. That is homeowner research, not a rental-policy quote or a forecast for your property. It is a timely reason to replace an old insurance estimate with current, property-specific information before refinancing.

For a rental investor, the useful opportunity is a clearer decision: how much does the policy cost each year, what does it cover, and how much cash might you need after a covered loss? Start your application with Pillar to review the financing side, or check loan options while you gather an updated insurance quote.

Put the premium and deductible on separate lines

The premium is the price of coverage. A deductible is the portion of a covered loss you retain under the policy's terms. The NAIC explains that deductibles may be fixed amounts or percentages of insured value, and that separate hurricane, named-storm or wind deductibles can have specific triggers.

Ask your licensed insurance agent to translate every applicable deductible into dollars. Confirm which insured amount a percentage uses and when it applies. A percentage of insured value is different from the same percentage of a repair bill. The actual policy and applicable rules control; do not assume every rental policy works alike.

Compare annual savings with the cash exposure

Consider two hypothetical quotes for the same rental, solely to illustrate the arithmetic. Quote A costs $3,600 a year and has a $2,500 deductible for the particular covered event being compared. Quote B costs $3,000 a year, with a 2% deductible applied to an assumed $350,000 insured amount for that same event.

Quote B saves $600 a year, or $50 a month when averaged over twelve months. Its illustrated deductible is $7,000: 2% multiplied by $350,000. That is $4,500 more than Quote A's deductible. The lower annual expense and the larger potential cash obligation belong in the same decision.

These are invented comparison figures, not available quotes, claim estimates or a recommendation. They do not establish equivalent coverage. Limits, exclusions, valuation terms and loss circumstances could change the outcome. The deductible is not necessarily the most you could pay after a loss.

Connect the policy to the refinance

Share the current quote and proposed effective date during financing review. Ask Pillar what insurance documentation and coverage requirements apply to the specific loan. Update the rental budget using the actual premium, then confirm how insurance is treated in the loan's qualifying calculation and closing estimate.

Keep the deductible discussion separate from the monthly payment. Money retained for a possible insurance claim should not also be counted as money already committed to the next purchase. If the property is moving from construction or vacancy into tenant occupancy, tell the insurance agent about that transition before coverage is arranged.

Bring both advisers the same property facts

Give your insurance agent the property's intended use and occupancy details, and ask for a written comparison of the policies. Bring the resulting premium, coverage information and effective date to Pillar along with your refinance goals. Your insurance agent handles coverage advice; Pillar can review the financing scenario.

Explore rental refinance options below, then Start Your Application or Check Loan Options. A current policy quote and a realistic cash cushion help you move forward with a more complete plan.