appartment building insurance
I am a new investor here in Virginia. We have created a new LLC to invest in multiple family homes for growth and income in Virginia and surrounding areas. I am in negotiations to purchase a 8 unit apartment building and I am having a hard time finding affordable insurance to make this deal profitable. CAN ANYONE POINT ME IN THE RIGHT DIRECTION PLEASE? The building was built in 1949 solid brick apartment, just needs TLC due to deferred maintenance. Does anyone know a good insurance agent that can help? Thanks Paul Underwood
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@Paul Underwood Part of the expense of the policy comes down to the replacement cost of the building. Or the cost to cover the mortgage. So in a state where buildings are inherently more expensive the insurance is just going to cost more.
I’m in an area with very few natural disasters and my 8 unit runs about $5,000 annually. However the insurance company has deemed it to only be worth around $500K. In reality on the open market I would expect it to be worth closer to $850K. But the insurance company won’t cover that.