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Aaron W.
  • Rental Property Investor
  • Northern Virginia
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How much in rental property insurance i be paying?

Aaron W.
  • Rental Property Investor
  • Northern Virginia
Posted Sep 21 2019, 08:24

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 MacKercher
  • Residential Real Estate Broker
  • Saint Louis, MO
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Peter MacKercher
  • Residential Real Estate Broker
  • Saint Louis, MO
Replied Sep 23 2019, 07:53

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. 

  • Real Estate Agent Missouri (#2010004223 )

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Dan Hoehn
  • Investor
  • St. Louis, MO
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Dan Hoehn
  • Investor
  • St. Louis, MO
Replied Sep 24 2019, 04:15

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

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Peter MacKercher
  • Residential Real Estate Broker
  • Saint Louis, MO
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Peter MacKercher
  • Residential Real Estate Broker
  • Saint Louis, MO
Replied Sep 24 2019, 10:54

PM Sent 

  • Real Estate Agent Missouri (#2010004223 )

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Jason Bott
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#2 Insurance Contributor
  • Insurance Agent
  • Nationwide
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Jason Bott
Pro Member
#2 Insurance Contributor
  • Insurance Agent
  • Nationwide
Replied Sep 24 2019, 10:57
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.

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Aaron W.
  • Rental Property Investor
  • Northern Virginia
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Aaron W.
  • Rental Property Investor
  • Northern Virginia
Replied Sep 24 2019, 11:37

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.

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Aaron W.
  • Rental Property Investor
  • Northern Virginia
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Aaron W.
  • Rental Property Investor
  • Northern Virginia
Replied Sep 24 2019, 13:48
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!

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Peter MacKercher
  • Residential Real Estate Broker
  • Saint Louis, MO
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Peter MacKercher
  • Residential Real Estate Broker
  • Saint Louis, MO
Replied Sep 24 2019, 17:29

@Aaron W. PM sent

  • Real Estate Agent Missouri (#2010004223 )

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Cory O'Dell
  • Rental Property Investor
  • Dayton, OH
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Cory O'Dell
  • Rental Property Investor
  • Dayton, OH
Replied Sep 25 2019, 00:17

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.