I've been searching for a good insurance company for my rental. So far prices have been surprising to say the least.
I saw others saying their policies covering around $150k with $1M liability paying $500ish. Are these just great rates?
What I've gotten so far:
Dwelling: $283k (USAA only does replacement)
Fair rent: $28k
Liability: 300k (Plan on making $1M)
Total annual premium: $990
So far all other companies are insuring the property for less and charging me more. The thing is the $283k figure is asinine. My personal home which is bigger, nicer, in more desirable neighborhood has a lower replacement estimate.
Are there any nation wide companies I should be looking into that offer these prices I read or have prices sharply risen recently? I've called State Farm, Allstate, and Progressive so far.
I have found the the smaller insurance companies are better for rentals. I've switched half of mine from State Farm because they are ridiculous. The $990 number is about right for the national companies.
Thanks for the quick reply. I also found something interesting in speaking to USAA again, they put a 25% "padding" in order to ensure if rebuild costs run higher you're still covered which isn't stated up front until you speak to them. Since I don't care to rebuild and would be taking an actual value should the need arise removing this so-called safety net changed my quote significantly.
The new dwelling insured amount is $227k
Liability coverage $1M
Deductible @ 1% $2,270
Annual Premium: $727.07
Anyone who uses USAA might want to look into this, they called the 25% extra "Home Protector".
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!