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?
maybe don’t get full rebuild cost ?
I pay $600 on my duplex and $1100 on my quad, but I’m not in the southeast corner ..... seems to be more expensive down there
@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.