Chicago rental, property insurance.

General Landlording & Rental Properties
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Chicago rental, property insurance.

Wen Y.
Homeowner · Chicago, IL · Member since 2010 · 5 posts · 2 votes

What do most people who own rental do in metro area?

I am planning on closing on the purchase of a two flat in the South Side of Chicago, in a high crime area. Allstate quoted me $3600 for a replacement value of 380k, for a property that will likely close at 50k!

My current home is in the gentrifying north side Logan Square. Per Allstate, same replacement value of 380k, at $1600 per year. Go figure.

What companies have you all used? I see some people purchasing replacement value policy, and other purchasing "at cost" either at the purchase price / mortgage cost.

How does one purchase umbrella policy for liability? i.e. if the tenants sue me? Is my current homeowner insurance for my own dwelling protecting me? or is the protection coming from the rental house insurance?

Wen.

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    12y

    @Wen Y. - I use the replacement cost insurance. My agent has gotten me much lower rates than State Farm / Allstate. Feel free to PM me and I iwll send his info

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    • Owen RosenBusiness Member
      Professional · Clinton Township, MI · Member since 2015 · 676 posts · 259 votes
      1y
      Quote from @Jesus Santoyo:
      Quote from @Brie Schmidt:

      @Wen Y. - I use the replacement cost insurance. My agent has gotten me much lower rates than State Farm / Allstate. Feel free to PM me and I iwll send his info

      @brie 

      @Brie Schmidt

      I am also looking for an insurance company for a 3 flat in the SW side are you able to DM me any recommendations, please.

      Happy to help in Chicago. See our profile for easy quote requests. 
      The information from a year ago let alone seven is worthless. The market is changing rapidly still.
      Royal Oath Insurance Group4.9204 Reviews
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  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    An idea is to not do replacement cost because these old buildings cost way too much to rebuild. Cover for 150% of actual value and you are still out way ahead if you have a total loss.

    We also go thru a broker that gets us to $453.00 per unit for our master policy including a million dollar umbrella. May be you should talk with him.

    Allstate, State Farm, American Family, Farmers, & Country are not the people you want to talk to for south side properties. They factor in risk of arson, bs torts, etc...into their figures and that is what you get $3600 per year. You need to go to companies that specialize in that type of insurance.

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  • Nick L.
    Real Estate Investor · Chicago, IL · Member since 2014 · 42 posts · 9 votes
    11y

    @Brie Schmidt @Mark Ainley 

    Could you please private message me your insurance people? Thank you!

    0Reply
  • Sheila Villacampa
    Homeowner · Chicago, IL · Member since 2014 · 36 posts · 8 votes
    11y
    @Mark Ainley, Brie Schmidt I am also in the same predicament. I have asked Geico, Liberty Mutual, so far with no luck. I would appreciate it if you can PM me as well with your insurance broker. My email is [email protected]. Thank you very much.
    0Reply
  • Davon Lowery
    Investor · Whitttier, CA · Member since 2015 · 405 posts · 110 votes
    11y

    @WenY 

    I know I'm late to the conversation but I have a pending counter offer on an REO property in the Greater Grand Crossing area. I would like to know how things worked out for you. Thank you

    0Reply
  • Leslie Voegtlin
    Investor · Chicago, IL · Member since 2017 · 22 posts · 6 votes
    5y

    Originally posted by @Mark Ainley:

    An idea is to not do replacement cost because these old buildings cost way too much to rebuild. Cover for 150% of actual value and you are still out way ahead if you have a total loss.

    We also go thru a broker that gets us to $453.00 per unit for our master policy including a million dollar umbrella. May be you should talk with him.

    Allstate, State Farm, American Family, Farmers, & Country are not the people you want to talk to for south side properties. They factor in risk of arson, bs torts, etc...into their figures and that is what you get $3600 per year. You need to go to companies that specialize in that type of insurance.


    @Mark Ainley

    I know this post is 7 years old but could I get the contact for your agent.  Thank you.

    Leslie

    0Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    5y

    @Leslie Voegtlin sure I will send you a DM now.

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  • Wen Y.
    OP
    Homeowner · Chicago, IL · Member since 2010 · 5 posts · 2 votes
    5y
    Originally posted by @Davon Lowery:

    @WenY 

    I know I'm late to the conversation but I have a pending counter offer on an REO property in the Greater Grand Crossing area. I would like to know how things worked out for you. Thank you

    Hi there, even later reply!

    I backed out and lost the $450 inspection and gave my realtor $100 gift card. 

    Did you buy in Greater Crossings? 

    0Reply
  • Jarret Jarvis
    Real Estate Agent · Chicago · Member since 2021 · 168 posts · 62 votes
    1y

    Hey Wen,

    Congrats on the two-flat purchase! Insurance pricing can be wild—definitely worth shopping around. Some investors use State Farm, Farmers, or specialty landlord insurers for better rates.

    For liability, an umbrella policy (separate from homeowner's or rental insurance) adds extra protection. Your rental property insurance should cover tenant-related issues, not your primary home policy.

    Worth chatting with an independent agent to compare options. Best of luck! #LETSGO

    – Jarret

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  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    1y

    Hey @Wen Y. - What did you end up doing?

    For anything investment related your  better off using an insurance broker opposed to using a Allstate or State farm.

    I am happy to refer you to my guy - he's great and gets some amazing rates!

    For my properties, I do the replacement cost for my northside builidings and then do something similar to @Mark Ainley idea for my chicago southside properties.  I also have an umbrella policy.

    [email protected]
    Quality Builders4.966 Reviews
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  • Jesus Santoyo
    Member since 2021 · 49 posts · 29 votes
    1y

    @Owen Rosen I will DM you- Thank you!

    0Reply
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