I incorporated my rental business last year and just bought my first SFR under the corporate name. For properties that are not in the corporation I pay about $650 for Dwelling insurance. For the property under the corporation's name I paid $1224. My questions are ...
Is this what other investors pay for Dwelling insurance for their SFR under a corporation?
If I had 2 or 3 under the same policy, would the insurance double and triple or is the next property going be only incrementally higher because I covered the initial costs?
The agent switched from a personal lines policy to a Business Owner's Policy. I know the rule of thumb was about $60/month for insurance so to have to budget $100/month on every house seems to be high.
Any information will help me seem smarter when I talk with the insurance agent.
First, regardless of whether you own in your personal name or LLC, you really should have all of your properties on a commercial property form master policy type policy, with an agency that is licensed in all 50 states for many reasons, not the least of which are convenience, incrementally lower premiums, receiving some coverage you cannot obtain on a "personal" lines policy and really because anything used to derive income is considered by the IRS to be a "business" exposure, just to name a few.
Pricing and structure of course vary by carrier and there are less than a hand full out there that can structure things the way I've suggested.
Hope that helps.
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