How much in rental property insurance i be paying?

How much in rental property insurance i be paying?

Rental Property Investor · Northern Virginia · Member since 2019 · 793 posts · 620 votes

Purchasing a couple of fourplexes in Dayton and Saint Louis, respectively, and am wondering what sort of coverage I should include in my rental property insurance policy? Also, what sort of premiums should I budget for?

I realize the costs may be location specific along with other factors, but would like to get a general idea of what to budget for? Also, any recommendations on good insurance companies or brokers?

Thanks in advanced for your assistance!

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  • Peter MacKercherBusiness Member
    Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
    7y

    On average I would budget 1% of the purchase price. I the cheapest i can get a 2-4 family is $750 For a 150k property in St louis city. 

  • Investor · St. Louis, MO · Member since 2017 · 37 posts · 31 votes
    7y

    Hi @Peter MacKercher, would you mind sharing your insurance broker in STL? I'm considering switching all my properties? Feel free to PM me.

    Thanks,

    Dan

  • Peter MacKercherBusiness Member
    Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
    6y

    PM Sent 

  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Aaron W.:

    Purchasing a couple of fourplexes in Dayton and Saint Louis, respectively, and am wondering what sort of coverage I should include in my rental property insurance policy? Also, what sort of premiums should I budget for?

    I realize the costs may be location specific along with other factors, but would like to get a general idea of what to budget for? Also, any recommendations on good insurance companies or brokers?

    Thanks in advanced for your assistance!

     AJ, for a rough estimate on a single location, 1-4 unit buildings, we would apply the average "rate" to insure $100 of Building value.  Current rates for combine Property and Liability are $0.40 in Dayton OH and $0.50 in STL.

    So in Peter's example, he has a $0.50 rate.  If you needed to insure for a higher Building limit, say $300k, then the premium would be $1,500.

  • Rental Property Investor · Northern Virginia · Member since 2019 · 793 posts · 620 votes
    6y

    Thanks for the reply! This is very helpful. A couple quotes I received were at about $300 /month for my fourplex. It sounds higher than what everyone is mentioning here.

  • Rental Property Investor · Northern Virginia · Member since 2019 · 793 posts · 620 votes
    6y
    Originally posted by @Peter MacKercher:

    On average I would budget 1% of the purchase price. I the cheapest i can get a 2-4 family is $750 For a 150k property in St louis city. 

     Hello Peter! Are you able to also provide this information for me? I am interested in obtaining a quote for our units.  Thanks!

  • Peter MacKercherBusiness Member
    Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
    6y

    @Aaron W. PM sent

  • Rental Property Investor · Dayton, OH · Member since 2018 · 142 posts · 74 votes
    6y
    Mine have been around $550 for properties in the $90k-$100k range. I have one older duplex that was build in 1920 we bought for $72k, and it's still around $550 due to its age and it being a duplex.
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