How much do you pay for Landlord Insurance?

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How much do you pay for Landlord Insurance?

Jordan B.
Real Estate Agent · Long Island NY · Member since 2017 · 89 posts · 33 votes

Hello,

I just received a Landlord Insurance quote from Liberty Mutual for $2,707. Does this seem high?

Background:  

2-Family Built in 1896

Located in Cincinnati Ohio

Updated Plumbing and Electrical

I will not be owner-occupying the property

What insurance companies should I try next and what questions should I be asking?

Thank you,

Jordan

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Jason BottPro Member
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
8y

@Jordan B. 1st, depends on how much building coverage you are buying.  For $100,000, $2,700 is very high, for $500,000 it's a fair price.

Also, Replacement cost on an 1896 building will be double what an Actual Cash Value policy will be.  It's up to your risk tolerance if you feel comfortable taking the extra risk for the premium savings.

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  • Bryan C.
    Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
    8y
    That seems high for location...I pm’d u who I and some other investors use/suggest.
    0Reply
  • Bryan C.
    Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
    8y
    Nvm can Message u. Message me
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  • Bryan C.
    Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
    8y
    Can’t *
    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    8y
    Originally posted by @Jordan B.:

    Hello,

    I just received a Landlord Insurance quote from Liberty Mutual for $2,707. Does this seem high?

    Background:  

    2-Family Built in 1896

    Located in Cincinnati Ohio

    Updated Plumbing and Electrical

    I will not be owner-occupying the property

    What insurance companies should I try next and what questions should I be asking?

    Thank you,

    Jordan

     Built in 1896 is your kicker there, that'll be way more expensive to insure. 

    Often when I'm saying to myself "man, that policy looks crazy expensive, this person needs to talk to my go-to for insurance!" I check the date it was built and then go "oh, well there it is, >100 year old home, never mind then."

    $225/mo is on the high end, but not for a >100 year old home.

    Incidentally, assuming this isn't a cash purchase, bring this to your lender's attention ASAP if you're close to the ceiling of what you were preapproved for. Make sure they left enough wiggle room in there to absorb a higher than expected insurance premium (differences in "how much wiggle room" are why three lenders may preapprove you for three different amounts). Insurance being $125/mo more than expected is about $25k in purchase price worth of DTI movement.

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  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    8y

    @Jordan B. 1st, depends on how much building coverage you are buying.  For $100,000, $2,700 is very high, for $500,000 it's a fair price.

    Also, Replacement cost on an 1896 building will be double what an Actual Cash Value policy will be.  It's up to your risk tolerance if you feel comfortable taking the extra risk for the premium savings.

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    8y
    Most of my single family homes worth about 100k with 2 mil liability cost about 600 per year or 50 per month. I have State Farm
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    Skyline Properties
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