Insurance for Rental in Kansas City

14 Replies

I have a handful of single family rental properties in Kansas City.  I was reviewing my monthly expenses with @Ian Reeves the other day and he mentioned that my insurance premium is way too high.  I called my insurance broker and he said it doesn't make sense to get a different policy with lower premiums until I have X number of properties.  He also said the more expensive policy is with a company that is friendlier when processing claims.

Does anyone have recommendations for companies with competitive insurance rates?  Is there a Rule of Thumb about owning a certain number of properties before you get a lower insurance premium?

how much you paying now? I'm averaging about 88/door/mo... but I have little frame of reference if that' good ok or high.

I like NREIG in KC. Can’t stand Shelter and that is who a lot of folks use. I pay closer to 50/mo/unit for my props with them. 

$50 dollars is awesome! I'm paying around $75 per property in Michigan. Does your policy include vandalism? 

Originally posted by @Lee Ripma :

I like NREIG in KC. Can’t stand Shelter and that is who a lot of folks use. I pay closer to 50/mo/unit for my props with them. 

 What value do they have for structures and what deductible? 

Originally posted by @Lee Ripma :

I like NREIG in KC. Can’t stand Shelter and that is who a lot of folks use. I pay closer to 50/mo/unit for my props with them. 

 Hey Lee, what is you can't stand about Shelter?  I have used them and NREIG, and prefer Shelter's pricing, but I have never had to file a claim - so untested in that way.

I've been very satisfied with American Modern. I moved from USAA to AM since USAA would not issue coverage to LLC ownership. I generally pay around $400 per year for ACV coverage on a $120K SFH rental. I generally set the ACV at around 80% for cost for me to rebuild since I take the risk that the house would not be a complete loss and I can cover the deficit if needed. I also carry a $2M umbrella policy that around $1,200 / year.

I'm with @Lee Ripma . NREIG is who we use. 

I talked to another company called Arcana, based out of Dallas, at the last REI meeting who had some surprisingly low rates, but have not checked them out personally.

@Michael B. Is your insurance company a national one. I’d be interested in checking with them about KC properties if you recommend them. 

It seems like what makes a “good insurance company “ is a balance of how low the premiums are and how fairly they process claims.  

@Lee Ripma Have you filed any insurance claims with NREIG?  And what has turned you off about Shelter?  You can DM me if you would rather not post — up to you

Thank you to everyone for posting. This is great info/insight. 

Originally posted by @Trent Kruessel :

@Michael B. Is your insurance company a national one. I’d be interested in checking with them about KC properties if you recommend them. 

 I believe they are national! I have seen a lot of people in the forum that use them. They also insure your property while your are still rehabbing it. 

Mine is $350 per year for SFH. But premium is 5k. I heard claiming would be the last thing to do unless it's really needed.

@Michael B.  My policy covers theft, is that what you mean? 

@Trent Kruessel  @Larry F. I haven't filled claims with NREIG so they ARE untested. I had Shelter on the first properties that I bought in North Kansas City and I actually did file a claim with them when a tree fell on my property. The claim went fine. Getting started with the policy they were difficult to work with and the guy didn't seem to know what he was doing. My properties have asbestos shingle siding, which is very common for homes built in the 40s. The shingles are not dangerous at all as long as you don't take them into a small room and grind them up while breathing in the air. They just sit on the outside of the building intact, so there is no exposure to asbestos for anyone. Shelter actually canceled my policy over the shingles, so I had to scramble to get another policy. The guy was also really hard to deal with and liked to lecture me even though he was the one who was disorganized and uninformed. It's possible there is more than one Shelter rep in KC but this one was terrible. 

Right now I'm investing in the "historic NE" and NREIG won't cover theft on my policy and I have a huge deductible of 10k. So I'm searching for a new policy, I'll probably get a policy with American Modern. They are more expensive but at least I'll be covered if there is theft on the property during rehab. 

@Lee Ripma that’s incredible! What does that cover? How much of the structure will they pay to replace if it’s a loss? My fear is a lack of coverage.

I was with Liberty mutual and once I added another property their prices were crazy. Went to another vendor but they constantly under valued properties and trying to get answers from them was impossible. Ended up going with my personal insurance agent with State Farm paying about 63 dollars a month on my duplexes. Not sure if it’s great but I know the coverage is good and claims are simple.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.