Insurance cost on a fully rented duplex?

[Joseph Kirk]

Hi, I am located in NJ. I purchased a duplex last year and lived in one unit. My insurance was approx $1000/yr. Now i plan to have it fully rented and the policy is looking to be $1860 for the year. Is this reasonable? I’d like to say I have a good relationship with my insurance guy and he told me it’s a fair price but I don’t have anything to compare it to. it’s a 1500 sqft up & down duplex with new roof & detached garage with basement if any of that matters.

Thoughts? Thanks

[John Mocker]

Joseph,

I think Owen's advise is your best route to finding out how the price compares to other options.  Find another agent (preferably an Independent agent who repesents many companies).  Ask for a comparison based on the current coverage and also any recommendations for better coverage.  Without all the info on the property, it is hard to say if the $1800 is reasonable for a Dwelling Fire Policy.  Factors such as age, fire protection of the location, alarms, construction, proximity to a coast, etc. can impact the rates.  

Some items of info that will help the agent quoting:

1. Loss History.  Did you have any losses and do you know of any under the prior owner

2. Age of the systems:   you mentioned new roof.  When were the Electrical, Plumbing, and Heating last updated

3. Alarms:  Is there a central Station Burglar or Fire Alarm, hard wired smoke detectors or CO detectors, video, etc.

4. Do the tenants have any pets (if any dogs, what breed)

5. Any Trampolines or Pools

6. Any inground tanks, active or inactive