Chicago - Landlord Property Insurance

[Christopher V.]

Hello, I'm looking to just gauge an average monthly rate that landlords pay for property insurance on their rentals. Really just looking for a ball park figure. $1000 a year? $2000? Also, anyone know what they base their quote on? Square footage? Home value? Etc. This specific unit I'm looking at is located in Jefferson Park and the ask is 465k. Thanks in advance for any information. -Chris

[Jason Bott]

@Christopher V. a few key points to consider.

If you live in the property, you will need a homeowners policy, which has a lower premium than a rental for the exact same coverage.

Both rental and home owner policy premiums are mainly driven by the property value you insure.  The value is driven by an acceptable cost per sq/ft.   In Chicago, the market value is usually higher than the rebuild cost, so start off getting quotes based on your purchase price.

A fully updated property will cost you less than a 100+ old frame building that has not been updated for many years.

Lastly, for rentals, premiums I see for high end coverage is around $0.40-$0.50 per every $100 of building value.  So, $500,000 building will be $2,000-$2,500.  That cost is consistent for lower value properties as well.