SFH Landlord Insurance

[Chad Pore]

Hello,

I am curious what insurance others are getting on their SFH rental properties? I have seen a number of posts where people mention they are paying $50-$75/mo on properties over $100K. How is this being done. Here are a few of my questions:

What is your deductible?

What are your liability limits?

So you have replacement value or ACV?

Are you insuring it for a specific dollar amount?

Our quotes have come back much higher so any insight is greatly appreciated.

Chad

[Chris Mason]

I'm not an insurance agent, but a lot of policies cross my desk, both people buying property in California, and folks with rentals in the midwest, East Coast, etc. 

Annual insurance premiums seem to have "price stickiness" in the neighborhood of $800 per year or so. It seems like it's really hard to get it significantly cheaper than that, no matter how cheap the property (or you spend a LOT of time on it, and only knock off like $50/yr). And if the property is 4x the value, the insurance premium might only go up 25% or 40%, certainly not 4x.

Expressed as a % of total monthly PITI, people with $50k and $75k properties often pay an absurd amount for insurance. This isn't captured by metrics such as cap rate and "2% rule" or "1% rule," or basically any other metric that's predicated on "rent to price" ratio without factoring in property specific expenses.