How much are you paying for insurance in WI? And other questions.

2 Replies

Hi folks,

Looking to close on my first commercial multi-family in Racine.  It's a hundred-year-old six-unit brick building in decent shape in a B neighborhood.  I've gotten several quotes ranging from $2k-6k a year.  Why the huge discrepancy?

In general this area seems really expensive to insure (every quote I get is around $1/sqft for the year, which is nearly 3x what I pay in California) so I wanted to check with some of you folks. The reason for the super high quote is because the "rebuild cost" is somewhere in the $600k-$1mm range even though the building's ARV is like $250k.

What are you paying for insurance?  I know every building will be different but surely $500/month for a 4500 sqft building is too much.  Can anyone recommend a local insurer who will get it right?

@Elliot Saks If the area has higher crime, that will drive up the price.

For any rental in SE WI, a competitive rate is $0.30 per $100 of insured value.  Example, $100k property goes for $300, and a $500k property goes for $1,500.

An average rate is $0.50, with anything over $0.75, you need to find other options.

I will PM you the insurance carriers who are the most competitive in the area right now.

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