North Olmsted, OH · Member since 2017 · 2 posts · 0 votes
Hello everyone!!! I am new to Bigger Pockets and owning rentals. In the last 12 months my brother and I have purchased 2 houses in the Cleveland Ohio area using the Brrrr method. We just purchased a third house this past month. These houses are in C and B neighborhoods. I was informed today by our insurance agent (the same one that we use for our personal houses) that his underwriter review our policy and it is wrong because he had the structures insured under a non landlord policy. Our rate skyrocketed to $1500 a year for each property.
the properties are insured for $100,000 actual cash value
personal items loss is $3,000
premise liability is $200,000
We have our residence get renters insurance and provide proof to our insurance company.
This is with a claim free discount, multiple policy discount and paperless discount.
Is this too high of rate and what should I be paying. Is there a company anyone recommends for rental properties
Real Estate Agent · Mukilteo, WA · Member since 2018 · 124 posts · 148 votes
6y
That seems like a lot to me. I recommend talking with a broker to find you the best deal. Get a plan with a high deductible to keep the monthly payment down.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Jason Piazza welcome to BP! IMO that rate is way high. There are lots of insurance companies out there; I happen to be with Farmer's for most of my insurance-but I also shop every two years and my agent knows that. Get a quote and maybe look into an umbrella policy for liability. That quote you got is way high or it could be a super high risk area; but I doubt that.
Real Estate Agent · Mukilteo, WA · Member since 2018 · 124 posts · 148 votes
6y
That seems like a lot to me. I recommend talking with a broker to find you the best deal. Get a plan with a high deductible to keep the monthly payment down.
Insurance · Garden Grove, CA · Member since 2020 · 36 posts · 10 votes
6y
@Jason Piazza sometimes traditional homeowner’s insurance companies may do further underwriting on properties and/or a drive by inspection which may cause them to drop a policy or change premium.
I would recommend that you work with an agent that specializes in rental/rehab property insurance. They can find you the best rates and the most appropriate coverage for your investments.
Feel free to message me for recommendations or any other questions.
Rental Property Investor · Dayton, OH · Member since 2017 · 247 posts · 225 votes
6y
My brother and I have several properties in the Dayton area, we also use the $600 annual or $50 per month estimate for insurance.
Dramatically increasing premium like this is generally a sign that the insurance company is no longer interested in that kind of risk. I’m not sure which company it is, but I’d highly suggest getting in touch with an independent insurance agent.
I have several clients in the Cleveland, Toledo, Akron areas and I’d say that $600 rule of thumb is accurate there as well, especially for actual cash value policies.
Rental Property Investor · Akron, OH · Member since 2019 · 9 posts · 3 votes
6y
@Jason Piazza I work for an Allstate office that's been in business for over 30 years. We work with many landlords in the area. While everyone's insurance rate is unique to them, 1500 does sound pretty high. I would be more than happy to take a look at what you have and make sure you are covered properly. We actually took a huge rate decrease at the end of 2019 and have been helping people save an average of $600/year
Rental Property Investor · Wooster, OH · Member since 2014 · 72 posts · 41 votes
6y
I have a guy for you that is with state farm. Hes very knowledgable with investment properties and coverages. $1500 is definitely high. Let me know if you want his contact info.
Real Estate Agent · Westlake, OH · Member since 2014 · 186 posts · 165 votes
6y
Just checked one of mine. $616 annual premium. West side of Cleveland, I’d call it a high C property. $188K replacement cost, the market value on the house is probably around $85K (its a good sized house). $1M liability. 1% deductible. I have 3 others nearby with similar premiums and coverage and I have had a claim (tree went thru garage roof).
BTW $200K seems pretty low on the liability coverage. Wouldn’t take much to use that up, if that happens then your personal assets are at a bigger risk.
Hello everyone!!! I am new to Bigger Pockets and owning rentals. In the last 12 months my brother and I have purchased 2 houses in the Cleveland Ohio area using the Brrrr method. We just purchased a third house this past month. These houses are in C and B neighborhoods. I was informed today by our insurance agent (the same one that we use for our personal houses) that his underwriter review our policy and it is wrong because he had the structures insured under a non landlord policy. Our rate skyrocketed to $1500 a year for each property.
the properties are insured for $100,000 actual cash value
personal items loss is $3,000
premise liability is $200,000
We have our residence get renters insurance and provide proof to our insurance company.
This is with a claim free discount, multiple policy discount and paperless discount.
Is this too high of rate and what should I be paying. Is there a company anyone recommends for rental properties
Thank you for your help!!
You should be able to get that done to $800-$1,000. In addition why do you have a personal property rider on there? I'd imagine you've got no personal property in your rentals. That rider is in part contributing to your higher premium.