Insurance on quadraplex

3 Replies

I am living in the Atlanta GA area, and just purchased my first 4plex. I have been shopping around for insurance on the property, but the quotes I am getting from insurance companies have annual premiums between $2700-$4500. They are insistent that the policy be written as a commercial property, with some even requiring a $1million policy on a structure that is worth no more than $350k.

 Has anyone had this same issue? If so, is there a way to get a more affordable rate? I am not sure if this makes a difference, but I will be residing in 1 of the 4 units. 

@Isaac Dunkelberger

you want to try and find a commercial policy that will allow you to have an Agreed Value policy.  this will allow you to insure the building below the Replacement Cost value without being penalized for being underinsured.

I insure several buildings in GA with this type of policy. 

It works well for buildings that have market values less than 1/2 the Rebuild Cost

I have commercial property similar to this. What I have done is create several bundle insurance policies with my agent. Separate and apart from liability, auto, etc, all of our properties are bundled into our “polished apple” policy. These are easy houses to insure in better areas, wider distances between buildings etc. another bundle are houses that may be of a slightly lesser caliber. The third has individual houses that we need short term insurance on. These are flips, wholesale deals etc. 

@Isaac Dunkelberger

Hi Isaac, I had called my agent at State Farm for quotes today on two duplexes in mid-GA. He recommended quoting policies per unit instead of per duplex. Each unit quotes to $553 annually and the replacement cost is way above market value.  Did your agents only offer to quote on the building or would they offer individual policies per unit?