Insurance for my first Quadplex!

25 Replies

I have my first Quadplex under contract in Savannah, GA and I'm looking for any insurance recommendations.

I got a quote from USAA and they are pretty good, but I'm not sure if I should be looking into commercial insurance or residential home/rental property insurance considering it's a 4-unit building?  

Thank you in advance! 

@Kevin Brenner congrats! Where in Savannah did you get it ? MLS posting ? I live there so I am curious. As of insurance for 4-plex, you might have a good deal with yours. Next would be our local statefarm... all others are expensive IMO.

Yup MLS. I've become pretty savvy at analyzing deals by listening to BP and educating myself at local REI meetups. And I'm sure a little bit of luck was involved too :)

I tried local statefarm and they quoted be double! Appreciate your reply! 

Originally posted by @Curtis Bellenot :

I use RealProtect for all my investment properties, that's all they specialize in. 

What kind of rates are they giving you on a 4 plex. I am getting ready to buy a 4 plex soon. USAA and other big names tend to be a bit high from my experience. Especially for SFR.

I have USAA for my personal insurance and love their customer service. My parents have also had great luck with them historically for personal property. If it's a difference in $10/month, I'd consider going with the one you think could provide better service in the event of an incident. But if it's more than that, I think price starts to become a factor. To an extent, insurance is a commodity, so I think you'll just have to call and get a bunch of quotes. If you get a lower quote from elsewhere, you may be able to negotiate USAA down further.

@Kevin Brenner will you be living in the 4 unit?  If so, you want to try and get a Homeowners Policy.  USAA will be able to offer that

If you will not be living in the property, REI Guard and Real Protect will be good alternatives. They do not write Homeowners policies, just rentals.

Thanks for all the replies!  But I have another issue:

I've done some research and found out that very few insurance companies will insure a property with older fuse boxes (instead of modern breaker boxes).  This presents a problem as this property has 4 individual fuse boxes.  Do you think I should try to get a high risk insurance policy or just replace the fuses.  After talking with some electricians, it looks like it will cost about $8K to replace all the fuses with modern breakers (that includes updating the building with hardwired smoke detectors which is a local city ordnance that is being enforced).

At the moment I was trying to BRRR this place.  I've considered fixing, adding value, raising rents, and flipping, but I'm honestly not sure. Appreciate any advice from the BP faithful!  

@Kevin Brenner I use Nationwide, but all the carriers prices go up and down over time. It is the kind of situation where you just get a bunch of quotes and see who is best. 

If you are holding long term, then upgrading to breakers makes sense. If you are selling soon, then upgrading to breakers will add no value - no rent value and no property value. My advice on the breaker panels is get several quotes. You could see a huge variance.

Having a fuse box does not require a "high risk" policy. Fuse boxes are bullet proof compared to some lower end breaker panels. Have you ever seen what happens when a breaker doesn't trip when its suppose to?

@Kevin Brenner Depending on the insurance carrier some have “high risk” requirements and others don’t. It honestly depends on how old the electrical is and whether we look at a standard or non-standard company. My brokerage has both and we can look at both options to see where your house would qualify
@Raymond Northcutt I'm still working it all out. I was able to find a local state farm rep who will write a policy for me with the fuses intact (which is great). I havent decided if I should just update the electrical for resale purposes, or just roll with the state farm rep amd save the $5K. I may still be able to work some of those costs into the front end of the deal too.

Originally posted by @Matt Moylan:
@Jeff Filali do you go directly through REIGuard or through a broker? I’m based out of KC as well and am just curious. We work with guard too when writing REI properties/portfolios



@Kevin Brenner , what did you select for insurance?  I'm based in Southern California and invest in several different places in the nation.  I have a beautiful, historical fourplex in Savannah in escrow right now and working on insurance quotes and potential investor partners.  Thanks.

@Bryan Zuetel I ended up going with USAA. As long as your place doesnt have knob and tube wiring and can carry 100 amps USAA will cover it. I had trouble finding other reasonably priced policies due to the older fuses, however. Where's your quad located? Love the small MFH as an investment vehicle. Hope this helps!

@Kevin Brenner , thanks for the insurance info.  This property has copper wiring and newer fuses and panels, so hopefully that will help with the premium quote.  The quad is located in the Victorian District just over the border from the Historic District.  

@Charles H

I just tried to price coverage on a 12 unit from State Farm and I was told that if the property was built after 2001 that they could not. Do you use State Farm to insure any 5+ units?