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.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing