Is it me or are you guys getting crazy landlord policy quotes?

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Is it me or are you guys getting crazy landlord policy quotes?

Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes

Hey guys,

I am closing on the other half of a twin/double I already own and am calling around for landlord policy quotes. The quotes I am getting seem quite high, and vary differently. Different replacement costs, premiums, etc. these houses are mirror images of themselves, and major systems updated around the same time.

what gives? And are there any big companies out there that you guys are pleased with?

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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y

I like American modern -not because they are the cheapest but their inspections are not picky and they leave you alone which is important in a low income property . Foremost is also like that but a bit higher . All state Erie and farmers were all ridiculous in their expectations for an old apartment building . I’ll gladly pay an extra 1-200 a year if it means they aren’t sending over Chester the inspector to go over my property with a fine toothed comb to find issues for me to fix

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  • Chris Babcock
    Member since 2018 · 63 posts · 52 votes
    7y

    Are you chatting directly with a local agent? When I got my recent quote for my duplex a local agent handled it all for me. Replacement cost was nicely over assessment value (~100k) and policy was $780 for the year. Not sure what you're seeing for pricing down in your neck of the woods but mine seemed reasonable.  

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    7y

    @Matt M. I use a broker for my rental policies. Most go through Foremost. They are very reasonable.

    2Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    I currently have State Farm for the one side. Replacement value about $90k more than its worth. It went up close to $70 this past renewal in December. I had State Farm quote the side I’m buying and it came up more! Same house, minus garage and 1/2 bath.

    Liberty Mutual just quoted at $70 more than State Farm and the new side higher replacement value than the other side. They are a mirror image of each other.

    Quote from Allstate for the owned side just came in almost $200 less.

    It all makes no sense

    0Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Chris Babcock

    Local agents for State Farm and Allstate. Liberty was not

    0Reply
  • Chris Babcock
    Member since 2018 · 63 posts · 52 votes
    7y

    @Matt M.

    I make it a habit to shop around for insurance although my local real estate agent does that. She usually gets me 3 comparable policies at different price levels and explains pros and cons to each one. I wasn't specific enough when I asked about the local agent, what I meant was are you going through a local insurance agent that isn't affiliated with a specific carrier? These kind of insurance agents basically do the shopping around for you and receive a commission from the carriers that they work with. Might be an avenue to pursue.

    0Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Chris Babcock

    Thanks Chris, most agents by me are brand specific. My wife tells me I’m crazy spending all this time over a few dollars but hey..

    0Reply
  • Chris Babcock
    Member since 2018 · 63 posts · 52 votes
    7y

    @Matt M.

    I would check out someone like these guys in your area:

    https://www.mearhoffinsurance.com/

    Not recommending them based on experience but if you hit their homepage, at the bottom right you'll see a carousel of their insurance partners. 

    HTH

    1Reply
  • Heath Ryans
    Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
    7y

    @Matt Michaelson I go through American Modern. My annual premium is $2085 for my 4 unit. Its market value is about 165-175k and my replacement cost coverage is for 349k. I thought it was a pretty good price.

    2Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Chris Babcock

    Thanks Chris-, but my biggest client with 20 houses had a terrible experience with them. It’s looking like Allstate is the winner, saving me $400 a year over my current carrier for both houses

    0Reply
  • Michael Norris
    Specialist · Strongsville, OH · Member since 2016 · 304 posts · 217 votes
    7y

    Do you live in the one side you already own?

     If so you could do a homeowners policy (acknowledging the other unit on the application) and maybe save some money that way? Not all companies will do that and honestly some agents may not even know it's possible but many companies will allow coverage to be set up this way so don't quit at the first agent who says no to this idea.

    Or you could get one landlord policy to cover both units then buy a renters policy for the unit you live in to cover your personal property in the unit you live in and your personal liability at that location.

    If your agent can't help look up Matt Dudash in Allentown, PA he helps my Ohio clients who need insurance in PA.

    0Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    7y

    I like American modern -not because they are the cheapest but their inspections are not picky and they leave you alone which is important in a low income property . Foremost is also like that but a bit higher . All state Erie and farmers were all ridiculous in their expectations for an old apartment building . I’ll gladly pay an extra 1-200 a year if it means they aren’t sending over Chester the inspector to go over my property with a fine toothed comb to find issues for me to fix

    3Reply
  • Tandi H.
    Investor · Albuquerque, NM · Member since 2017 · 133 posts · 83 votes
    7y

    We use MetLife for our properties, auto, and umbrella policies.  They are about $500/year for a duplex with market value of $150-200k.  We get several discounts, about 15%.

    1Reply
  • Will C.
    Rental Property Investor · Richmond, VA · Member since 2016 · 279 posts · 133 votes
    7y

    @Matt Michaelson

    I just switched to State farm from Allstate on one of my rentals. A savings of $300/yr on premium and also switched my autos over while at it.

    Ive never figured out how the insurance biz works. Seems every three years when I get quotes, someone else comes in cheaper. I will say I was very impressed with the personable service I received from State farm agent.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @John Underwood:

    @Matt M. I use a broker for my rental policies. Most go through Foremost. They are very reasonable.

     are those MH  when I had MH foremost was the go to insurer. never used them on stick built

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  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Will C.

    There is no rhyme or reason. They came up with different replacement costs for the same houses.

    0Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Jay Hinrichs

    These are stick built 1900’s houses

    0Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Dennis M.

    One of my clients uses American modern for a bunch of his properties. I guess Allstate will only insure up to 4. He is happy with American Modern.

    1Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Michael Norris

    No, both rentals but thanks for the info

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @John Underwood:

    @Matt M. I use a broker for my rental policies. Most go through Foremost. They are very reasonable.

     are those MH  when I had MH foremost was the go to insurer. never used them on stick built

     Yes,I have MH's and stick built insured with them.

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    7y

    Allstate costs me less than $600/year per $300k house with 300/300 limits for the umbrella to kick in. They are limited to 6 rentals unless your agent is willing to put in an hour’s worth of work. Mine wrote up a “Business case” to allstate head office about why they should take 6 more from me for a total of 12. Took less than 2 days for approval. 

    They’ve covered 2 x $30k claims (toilet supply lines in 2 different houses) with no complaints and no rise in premiums. 

    2Reply
  • Yacine Rimmo
    Astoria, NY · Member since 2017 · 69 posts · 25 votes
    7y

    Hey Matt,

    I have a property in Allentown and someone recommended the The Philadelphia Contributionship, I also learned that my lender was using them... I think they are mostly affordable. I am with them but haven't had the chance to need them, the less the better I guess. The ratings I found online about them are not very stellar thought.

    I also was quoted based on interestingly different replacement values depending on the agents.

    1Reply
  • Mark Burlison
    Member since 2018 · 83 posts · 51 votes
    7y

    My wife is a CSR for HomeStar Insurance in Illinois, she is licensed to sell home and auto. They are a broker for many companies. She recently found coverage for the 4 unit we closed on with Westfield. A 260k property for 2113.00 a year.

    1Reply
  • Randy E.
    Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Matt M.:

    I currently have State Farm for the one side. Replacement value about $90k more than its worth. It went up close to $70 this past renewal in December. I had State Farm quote the side I’m buying and it came up more! Same house, minus garage and 1/2 bath.

    Liberty Mutual just quoted at $70 more than State Farm and the new side higher replacement value than the other side. They are a mirror image of each other.

    Quote from Allstate for the owned side just came in almost $200 less.

    It all makes no sense

     I once used Nationwide for my landlord policies.  When I finally balked at the high and ever-increasing rates, I went to an insurance agent who represented many insurance companies and not just one.  She came back with a policy that was less than half of what Nationwide had been gouging me for.  Essentially identical coverages, half the price.

    Instead of you going to three one-company agents and trying to compare prices, go to two multi-company agents and get quotes from a dozen companies. 

    2Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    @Matt Michaelson

    I went with a local broker. I was getting quotes from $1,100-1,700. Have you tried asking other landlords for referrals?

    0Reply
  • Matt M.
    OP
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    @Anthony Wick

    I have. American modern, Allstate and Statefarm seem to be the popular ones here

    0Reply
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