It's hard to determine if a deal is going to work well when I don't know how much insurance will cost me. I can't get an accurate quote from an insurance company because they need specific details on each house to provide a quote, which I can't provide when I'm just browsing through dozens of different deals trying to see if any of them work.
So I come to you. I've looked up Oklahoma insurance rates and I'm getting very conflicted statistics. Some sites say we are in the bottom 3 for insurance prices while others say we are in the top 3.
What do you pay for your landlord insurance and for what kind of coverage?
are you looking at replacement cost policies or cash value?
When I am analyzing deals I will call my insurance company that I have all my rentals through and give them the basic info off Redfin or Zillow and they are able to give a fairly accurate quote on the property, usually within $20. That is just my experience.
As for the kind of insurance I have rental dwelling policies, (don't know the exact term) with replacement cost. Others may not have replacement because it costs more however this is what I do.
My advice would be to find a reputable insurance agent and talk with him about your plans for insurance.
I have a friend who is in insurance that knows exactly what I'm looking for to insure my rentals and therefore can get me a very accurate quote. Also, if you are continuing to buy the same types of deals, around the same price range, and in the same area, your insurance costs will typically be around the same price so you can quickly estimate and pull the trigger on a deal.
Message me if you would like my insurance agents contact info. He would definitely help you out in any way he could.
@Jacob Barnhart greetings to a fellow Durant resident. I use a commercial landlord policy for all my homes, and my agent provided me the formula they use based on the square footage for insuring my homes. It lets me keep it plugged into my offer evaluator spreadsheet and I don't have to think about it. I agree with @Josh Chappell that price range and area similarities will help a lot, and I have done that with this formula. Likewise, PM me and I can send you his contact info.
When we are estimating insurance as part of a deal, we find insurance runs about the same as taxes so I can get a rough estimate by looking at the tax bill on the county assessor website. Not foolproof but a very simple start.
Hey Jacob, if you still haven’t found an agent I would love to connect with you to offer some assistance. After addressing your needs, and questions getting a quote is the simple part. I’m open to collaborating.
I'll give you actual numbers on my rental if that helps. I own a 2,000 SF duplex in the Plaza District of OKC and I pay $120 a month with State Farm, which is full replacement cost. I talked to a number of insurance agencies, and this was the best deal that I found - I chose full replacement cost since it was only about $15 more a month and was almost twice the cash value in terms of what it covered.
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