What is typical insurance cost and policy like for a rental in OH

11 Replies

What is a typical policy like in Ohio for a duplex? What should I make certain to include and what should I be certain to avoid doing? I'm looking to insure properties valued at around 150k.

Originally posted by @James G. :

What is a typical policy like in Ohio for a duplex? What should I make certain to include and what should I be certain to avoid doing? I'm looking to insure properties valued at around 150k.

 I can share some insurance agents with you that operate in Ohio. It can range wildly but I underwrite deals at $600/door/year (typically a conservative estimate)

Originally posted by @Remington Lyman :
Originally posted by @James G.:

What is a typical policy like in Ohio for a duplex? What should I make certain to include and what should I be certain to avoid doing? I'm looking to insure properties valued at around 150k.

 I can share some insurance agents with you that operate in Ohio. It can range wildly but I underwrite deals at $600/door/year (typically a conservative estimate)



I would love a referral yeah. Thank you. Tmrw I need to call a whole bunch of people. 

The costs of the insurance can very significantly due to a few of the following factors.

Are you getting full replacement value or just the cost to cover your investment loss?  Do you have loss of rent coverage?  What is your deducible? Do you have a standard home owners policy or is it listed as a rental property? 

These are important questions to answer and it makes a big difference to the insurance company. 

In your example the $150K duplex you have.  Full replacement value might be close to $400K (its based on square footage and zip code), if you have a total loss the insurance company will rebuild the the house.  If you only insure the property to $150K (to cover just your investment) then in the case of a total loss the insurance company hands your a check for $150K and you have a destroyed house that you have to demo and hopefully donate to the city.  You can also get a policy that includes lost rent, so if your tenant has a fire that makes the unit uninhabitable and it takes the insurance company 6 months to get it fixed then they will pay you the 6 months of lost rent. 

Also there are different policies for rental properties that cover you for liability as a landlord if someone gets hurt at the property for example.

Lastly once you have over a certain number of rental properties (ususally 4 in my experience but I'm sure each company is different) you can get a bulk policy for all of them together that could save you money. I have one agent that can combine personal auto, home, and up to 9 more properties and it passes the combined home/auto discount onto the rental properties but I don't know if he can offer that to out of state investors.

Make sure to ask the insurance agents about these different points so you are comparing apples to apples and have liability coverage as a landlord. 

All of our insurance quotes so far have come out from $900-1200. Our properties so far have been about 60% multi and 40% single families. We're in Cleveland just as a point of reference! 

Waste of money. Just pocket the $1,000/year. When was the last time your house burned down? It’s incredibly rare statistically but you feel pressure to participate because everyone does, and “what if” lightening actually strikes. You own ten houses for ten years that’s $100,000 in your pocket.