What Insurance Carrier is the cheapest?

Question

I am curious to hear who everyone uses for Insurance Coverage - as far as Carrier Goes?

I am seeing a lot of Success with State Auto insurance, Aegis, and BHHC, for my Rehabs/Flips/Rental Clients.

Who do you see competitive pricing for insurance?

Thanks in advance!

Filipe Pereira · Answer

I tell everyone in my neck of the woods (CT / MA) about AAA. Yes, that AAA. The one that tows cars. They have incredible rates for multi family. They have been the most affordable every time I have price checked (once every 2 years). I call around to 10+ companies and even tried a few brokers. Nobody can touch them for the coverage that they offer.

John Underwood · Answer

I would say cheapest. I would say who offers the best coverage for the best price.

I use foremost for most of my LTR and STR properties. I go through a broker who finds me the best deal on coverage and price.

Bjorn Ahlblad · Answer

@Tj Simmons I always check feedback on google. The cheapest insurance companies are able to be cheap by avoiding paying claims, why have insurance like that! I have been fairly treated by Farmers and their pricing has been pretty good too.

Joe Splitrock · Answer

@Tj Simmons every market is different and it changes over time. Carrier X may cost the least in your market, but could be the most expensive in other markets. It is common for insurance providers to reduce rates to expand in a market, then increase them when claim events occur. The best answer here is shop multiple carriers and get new bids every couple years.

Owen Rosen · Answer

If you treat insurance like a commodity you're likely to be very disappointed if you ever need to use it.  Each of the companies referenced offers many different types of options and loss provisions.  It's important for an expert to discuss your actual needs so you understand what you're buying before you ever need to use it.  We strive to provide the best value.  It's not very often you buy the "cheapest" of something and get the best quality, is it?  Beyond that, pricing varies greatly among individuals and properties.  No one company offers across the board pricing that turns out to be the lowest for everyone.

Johnny D. · Answer

@Tj Simmons

To answer your original question, I don't know if it is something weird about me individually, but for every property I have every bought, somehow Nationwide always is the cheapest, and that includes properties in multiple states and with large differences in the characteristics of the involved properties.  I always call for at least ten quotes as I continue to think this next property will be the one when I find someone cheaper, but so far, I've yet to have that happen.  It is quite the mystery to me.

Saravanan Saravanan · Answer

@Tj Simmons With my experience of over 25 years of doing real estate; the insurance pricing depends on the location, whether the unit is vacant or occupied, primary or vacation rental or regular lease, any claims are done by you in the past, size of the lot, condition of the property, value of coverage needed to be compared with the purchase price, swimming pool or not in the property etc.

Tj Simmons · Answer

Hi Greg - thanks for the comment on my post! My Original question still stands. what Carriers are you seeing that have competitive priced policies. that is my question. I did not ask how to shop insurance.

Thanks for your comments!

Greg M. · Answer

This is coming from someone who works in insurance. YOU need to shop around. The idea that there is some carrier out there that has better rates across all the markets or product lines is unrealistic. There are a million factors that go into quotes. Quotes can vary based on your personal history, the property style/location/updates, the amount of risk the insurance carrier currently has on the books for your risk type, local laws, your marital status, and on and on. What company gives me a great rate may be the company that gives you a lousy rate.

Tj Simmons · Answer

Hi Joe - thanks for your input, I appreciate it!

I would agree for the most part, but that still does not answer my genuine question of who YOU see having good pricing currently! That is really my main question. I understand the best way to shop insurance and how to structure and handle it, I am an investor who also has been an insurance agent for almost 5 years now. I was just curious to hear across this platform, who was currently "Competitive" for insurance coverage. Loving the responses thus far.

I think anyone that takes the approach you explained and is not an insurance professional - is working with a good agent. The Agent should explain how the industries work, and that is exactly it. Philadelphia Insurance was a huge Habitaional and Multi-family insurance carrier in the state of Michigan for over a Decade up to the year of 2020. in 2019 they had insane claims, to the tune of over 10 million in paid out claims in Michigan - so they stopped writing those types of policies in Michigan, and "got out" of the market. You want to make sure the agent you are working with is following market trends, and finding the next best place for your coverage. That is another reason I made this post - to hear market trends across different areas.

What Insurance Carrier is the cheapest?

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