Insurance quotes

2 Replies

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)

Deductible: $2k

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!

Ultimate Beginner's Guide Book Cover

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.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here