Apartment Insurance cost for a 15-20 unit? How much do you think?

[Kendall Webb]

Looking at purchasing an apartment complex. How much can be estimated for a 15-20 unit? I know the actual number will be different but just trying to guesstimate  run some numbers before I look more into it.

Thanks every one! 

[John Mocker]

Kendall,
Your premium for an Apartment building will vary depending on:
1. construction (wood frame, Joisted masonry, CB & Steel, etc.)
2. Location
- fire protection (ie. hydrants, paid fire dept, etc.)
- Coastal distance (impacts wind losses)
3. Past loss history
4. Condition of the Building & Property
5. Amount of coverage
- Replacement Cost (rebuilding cost)
- Deductible
6. how updated the systems are (Roof, Plumbing, Electric, & Heating

Best estimate is a quote on that property or a similar property.

I would recommend discussing it with your agent to get an idea of some of the things that might make a property hard to insure such as:
- knob & tube or aluminum wiring
- cracked/pot holed driveways or walkways
- stairs without hand rails
- not having two means of egress from all units
- Lead paint
- tenants with aggressive dogs such as pit bulls and Rottweilers.
- Business exposure (garage rented to business

The above do not make it impossible to get insurance but they will lessen the markets willing to write the coverage. That usually results in higher cost and less coverage.