Insurance- - are you paying 8%? of market value on properties?
Anyone have suggestions on insurance companies? I'm currently around 8% of market value per property. Is this in par with what everyone is getting? 100k property - 80'ish/month.
Appreciated..
#2 Insurance Contributor
- Insurance Agent
- Nationwide
@Jesse Kerr The insurance carriers do not use market value in their premium formula but sq/ft as the basis to their premium. Therefore, rate per $100 of Building Value & # of units for GL is a much more accurate measurement for comparisons sake.
Here is the current spectrum of rates for Milwaukee
GL - SFR & Duplex- $50-$125, 3-4 unit, $100-$200
Property rates can be $0.10 - $1.00 per 100 when going from a brand new build Class A to a war zone 100 year old building with claims.
An additional factor is the sq/ft of each Building. Some SFR properties in Milwaukee can be 700 sq/ft, while some singles can be 2,000.
Minimum Cost Per sq/ft is becoming a big issue with increased cost of construction and inflation. On the low end, Insurance carriers are asking for $100 per sq/ft as a minimum insured value if you want Replacement Cost, and $75 if you want ACV. 5 years ago I could negotiate $55 on RC and $25 on ACV.
On the high end, we are seeing insurance carriers asking for $150-$175 per sq/ft.
Hope that helps
So I need the most amount of bedrooms for rent's sake and the least amount of square footage to pay the least amount in insurance.. There's the sweet spot noone talks about.
This is gold info.. Thank you for sharing..
