Rental Home Insurance - Baltimore MD??

Question

Hello BP Family,

I just purchased my first rental home last week and I am currently looking to switch my home insurance from geico to a more competitive priced company. Geico is charging me 120$/m on a $100k Single family home.  When i spoke with them about why i was paying so much they informed me that they could lower it but I would have to go through a lengthy process to do so. I know that 120$/month is very steep. the property is completely rehabbed and in great condition (new appliances, new roof, new HVAC etc..) I payed 100 grand for the home and it was appraised for 140K.

I was wondering if anyone has any recommendations on who i should go with in regards to Home Insurance on this rental property. Thanks!

Kim Coleman · Answer

A second vote for Hillpointe Insurance. Very customer focused, responsive, have local knowledge and the best rates I found during my search in the last 30 days. @Vernon Bond Congratulations on your purchase!

Christina R. · Answer

I would also recommend Adam Knoll of Hillpointe Insurance in Baltimore, let him know I referred you. He may be able to beat Luray's rates (I've used both in the past).

Ned Carey · Answer

Steve Luray of Luray and Associates Inc goes to  Baltimore area RE  investor meetings and offers insurance for investment property. He understands the risk of rental property and can give solid advice. He may not always be the cheapest guy but he know his stuff and I know he could beat the rate you have now.

Kevin Romines · Answer

Geico doesn't offer home policies themselves. That then means they are a broker. Now there is nothing wrong with being a broker. In some instances, it may be a better situation for you the consumer, only so long as they can provide you with the correct coverage with a triple A  rated company at very competitive rates? So you are reliant on them to do the shopping for you? Good or bad, you decide?

There are many factors that make up your premium on a home policy. The ones that have the largest impact on the rates are the reconstruction costs, not to be confused with market value or what you paid for the home. This is what it will cost the insurance company to rebuild the home to its current condition only new. Most insurance companies also error on the side of higher reconstruction costs to feel confident they can get it rebuilt.

Location and proximity to fire hydrants, and paid fire stations would also be a critical rating factor. Contents and separate structure coverage are also contributors to the premium. Additional endorsements will also boost the premium.

The #1 factor that makes up your premium is the reconstruction cost, followed closely by the fire rating. If you want a different number than what they came up with, you may be forced to consider an Actual Cash Value policy. ACV is the cost to reconstruct it new minus depreciation of current condition and age. You typically wont see much change in the premium on an ACV policy, so to me it just doesn't make any sense to consider it, but that's up to you?

Vernon Bond · Answer

Thanks everyone. I will let you know of my results.

Joseph England · Answer

REI Guard formerly known as Affinity Group Management is very investor friendly and easy to use. There response times are great too.

Jeff Bridges · Answer

I would start by calling back geico and make sure they've properly shopped around your quote to the best insurer. I used geico and they don't always present you with the lowest priced quote available. I've generally found stillwater to offer the lowest rates in this area for my rentals. call back the sales department and ask for a quote from stillwater through the geico reps. the company you are currently insured with might just be pricing based on high vandalism/ theft rates in the area or something they perceive to be high risk for the area. Does the property have a long history of claims (maybe before you owned it?). Do you have a history of claims for other properties?

Others I'd check with is Amica insurance, state farm and finally NREIG(which is investor friendly and offer inexpensive commercial policies with included 1 million liability (but more expensive in general than you can get through the personal landlord policies)

http://www.nreinsurance.com/