How do you estimate insurance on a multifamily when evaluating

Question

How do you estimate insurance when evaluating a multifamily property, without calling an insurance agent. I evaluate quite a few deals, but that is the one thing I haven't really figured out. I have quads, duplexes, and SFH and comparing the insurance doesn't really help. Our duplex is almost as much as our quads, and if I multiply our SFH times 4, that is much more than what we pay for the quads.

I am evaluating a multifamily deal in Huntsville, AL and my insurance guesstimate is way over what was provided by the seller's agent. But the amount provided by the agent seems unrealistically low.

I am evaluating a multifamily deal in Huntsville, AL and my insurance guesstimate is way over what was provided by the seller's agent.  But the amount provided by the agent seems unrealistically low.

Tim White · Answer

@Larry H.  I am an investor here in the Huntsville area and I agree with @Jason Bott  You could get one estimate from an insurance broker and compare to like and kind dwellings in that area.  Also many realtors or even property managers could provide you with an estimate for the units.  Let me know if there is anything that I can help you with in the area.

-Tim

Ellie Perlman · Answer

Larry, I work with a property management company, and they have an online form that we fill out to get an estimate from their insurance guy. It takes 5 days on average, but for the most part we'll do it only before we submit an LOI. For the initial part of the underwriting, you can ask the property management company (for a rough estimation) and compare it to what is provided on the T12.

Good luck!

Jason Bott · Answer

@Larry H. unless you have  a current policy with like and kind properties, in the same zip code, it's hard to estimate.

Best options would be to quote 1 of the multi's your looking at in Huntsville and then use those #'s for comparison.