Insurance quote before closing

[John G.]

When analyzing a property and estimating NOI, we use hypothetical numbers. One such number is insurance.

Since running numbers as detailed as possible is what we do to make sure an investment makes sense, is it normal, or even possible, to obtain a quote for a specific property before purchase?

[Joe Funari]

@John G. Insurance companies can quote landlord insurance within 24 hours. They are easy to quote. But finding an insurance company that will provide month-to-month "builders risk" policies when rehabbing properties are gold. So keep them on your team. Most companies don't have experience with investors. Asking about the month-to-month builders risk eliminates most. If they do offer builders risk but you must buy in six month increments move along. There are better ones out there.