Insurance Premium Assumption for Underwriting
Howdy Folks,
I am in the process of analyzing some deals and I had a question regarding the insurance underwriting process. First, how is real estate insurance calculated, replacement cost?
I want to be able to input a base number x% of the purchase price. The x could be scaled up or down depending on the age of the home.
Ex: An older one would have a 1% x purchase price = annual insurance premium.
Ex: A newer home would have a 2% x purchase price = annual insurance premium.
Would this be a decent rough estimate or are there better ways? Again, I want something scalable to be able to apply to multiple properties quickly and effectively.