MN Insurance Broker/Any expert advice?

5 Replies

G'day there.  My question is I have 26 units and I would like some sage advice/referral to an insurance broker.

Specifically one that will underwrite and insure at a valuation I set or actual purchase price for the structure.  

My premiums are about 20000 per year and unless i am crazy that is way too high.  Thank you in advance for the Help.

God Bless.

Bernie

HI @Bernard Obrien , welcome to Bigger Pockets.  I use the National Real Estate Insurance Group (NREIG).  They let me set my value and had insurance options which were cheaper than my previous company.  I would recommend you have them quote your portfolio.

They will walk you through it but you pretty much give them a value and they run a quote.  They do have a clause for co-insurance if you insure the policy for well below the value.  I don't know the specifics but lets say you have a $100k policy on a $200k property and $75k of damage occurs.  They will not pay the entire amount, they then pay a percentage because it was under insured.  Figured I would mention it as it wasn't something I had come across prior to working with them.

Good advice. So I believe that in your scenario you are sharing risk (co insuring) at 50% therefore on a 75k loss they pay 35k you pay 35k. Something like that? I’m sure they’ll run me through it but great information to understand sir.

Originally posted by @Bernard Obrien :

Good advice. So I believe that in your scenario you are sharing risk (co insuring) at 50% therefore on a 75k loss they pay 35k you pay 35k. Something like that? I’m sure they’ll run me through it but great information to understand sir.

If you insure the property at the correct value there will be no co-insurance issue.  It will operate like regular insurance.  I just wanted to mention it because it was something I wasn't accustomed to talking to my agent about.

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