Insurance Premiums seem high..
We are purchasing our first duplex and I received quotes from a couple sources for insurance. The house is approx 2100 sq ft, and purchase price is $56k. The comps in the neighborhood are similar.
This is what I received for 40% replacement:
Dwelling (Coverage A) 103,200 $883.00
Dwelling Extension 28,000 $28.00
Personal Property (Coverage B) 5,160
Business Liability (Coverage L) each occurrence $300,000
Business Liability (Coverage L) annual aggregate $600,000
Premises Medical Payments (Coverage M) each person $1,000
Deductibles
Policy deductible 1,000
Total Annual Premium 911.00
---------------------------------------
The 100% coverage was set at $258k, with premium of $2143. I know to bump up the deductible to $2500, but no 2100 sqft house in this city ever cost $258k (without land). So, it seems that the best path is to set the placement at 50% of full, with a $2500 deductible. I don't under stand how they calculate the $258k, that is VERY high for this area. But, I'm sure they don mind me paying higher premiums...
Thoughts?