I know the correct answer is, "It depends on the property, call a local insurance estate agent!"
That said, for quickly screening multiple properties, I'm interested in getting a sense of how the scale works for insuring investment properties.
I'm looking at properties near my own home, so I know what it costs to insure a 1,000 sqft single family home here: roughly $800/year. I've seen many rules-of-thumb for estimating insurance on a duplex and most say bet on roughly $100-150/month ($1200-1800/year). This makes sense to me since a duplex around here is roughly 2x the sqft of my home and when you factor in 2x the occupants you'd figure insurance should be ~2x as much.
Now, when I look at a 4-family quad, am I doubling the duplex number? This seems really high and I would think it's not consistent as you go up, i.e. insurance on a 50-unit building won't be 50x the cost of a single-family home, but maybe it is? I feel like a quad should be more than a duplex, but not 2x as much. On the flip side I think just estimating $1200/year for every SFR, Duplex, or Quad I screen doesn't make sense either. Is it better to do an estimate per sqft?
What do you guys use for an estimate on insurance costs when screening properties?
Try NREIG www.nreinsurance.com
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