I'm currently analyzing properties, and trying to get accurate numbers for insurance cost.
So first I tried requesting quotes online from various companies, but I'm realizing those are for personal properties, not investment properties, so I always have to call in and it takes like 20 to 30 minutes to get a quote over the phone.
How do you estimate insurance cost when you just need to ballpark it? Is there a "rule of thumb" percentage of the purchase price to estimate for insurance cost?
Thanks and let me know!
Call local insurance agents. You'll eventually develop a rule of thumb for your market.
In my market, I estimate insurance to cost about 50% of taxes. That works well about 90% of the time and the other 10% it is wildly off. You have to remember a rule of thumb is a starting point and further analysis is always required.
In my market I use local agents. State Farm is about $600/year. It does depend on your area. I’m in the Midwest much different then California.