Home insurance policies for a buy and hold

[Carol DiCesare]

Hi everyone,

I am located in Houston with one rental property under our belt. We rehabbed it and financed it. We just recently changed the deed to an LLC but when I updated this information with my insurance agent, the policy was cancelled. I am being told that most insurance companies don't like to insure under an LLC. My agent has been "shopping" around. The only policy that my agent could find is $3100/yr for a $210,000 property. It seems really pricey to me. Is this the case across the board? Can I do anything about it or should I just bite the bullet and pay this high premium? Does anybody have a good real estate agent who works in Houston that can maybe help?

Thanks,

Carol

[Whitney Breedlove]

I live nearby in Clear Lake and my personal policy was just dropped and all new policies were over double the price. I went from paying $1600/yr to being quoted $3500 and this was under my name, not an LLC. They're raising insurance prices like crazy so it may not be just because you're an investor. Definitely shop around though. If it is just because it's under an LLC then it could potentially be worth it to put it back under your name and then just buy umbrella insurance to protect you? I also have an investment property in Pearland and so far my homeowner's insurance has remained steady on that home at around $1700/year (it's under my name, not an llc).