Insurance for Rental in Kansas City

35 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.

I can't stand NREIG and that's who I'm with, but I am insuring vacant properties.

I have a conference call with Arcana this morning - they have been offering policies for landlords, renters and builders risk for years and they have just partnered with National REIA - that means better rates and buying power for the members of National REIA.

@Trent Kruessel I am with @Kim Tucker and @Lee Ripma as a user of NREIG. I use them for my vacant flips and one policy on a rental. Multiple times now they have failed to cancel a property after we have logged the cancellation both through their system and with our agent. However, some of that might be personnel turn over. I have never filed a claim though but the rates are pretty affordable. 

Kim I would love to hear what you found out. 

I think I'm going to try policy with American Modern for my 4plex in Historic NE. Sold by Glenn Fallis of AHI group in KC. 

I have American Modern for my MO property through AAA. Good rate, even beat Real Protect. Haven't filed any claims but seems to be good service when I've called

@Dan Krupa of course! Hoping there are not any claims but best to be covered! 

I primarily use their vacant property insurance product.  we don't insure rentals much.  So I can't speak for umbrella policies and multiple rental properties.

We did a quote with Arcana last week on two properties. that is a little more than 1/2 of what I am paying with my current provider and actually any vacant property produced I have used and I have worked with 2 of the top providers in the country over the past 10 years.  

I have always figured about $100 of cost per month per $100k of property on vacant property and of late have been seeing it be more like $119 per month per $100k.  My quote was $78 a month for a $200k policy.

And their system seems very very simple 

-Register for an account

- Request a quote

- Get quote  almost instantly

- Save the quote or buy the produced right there online.

- Purchase by the month, several months or by the year.

I have been watching Arcana for several years and here is what I have learned from watching them and from our conference call this past week.

  • They have not changed their name in the past 3 or 4 years that I have been watching them.
  • They don't have a lot of different office staff for me to keep track of when I need to ask a question,  Drives me nuts to contact my "account person" to find they have moved to a different division or are no longer with the company.
  • One single point of contact and I am hoping their website where I go to get new policies does not change regularly.
  • I don't have to pay an upfront deposit to open the account to add properties to as I buy and sell.
  • They will not close out my account when I have no properties in inventory. 

So going to give them a test this month to see how their customer service and payment program works.  I like simple and easy and not a lot of change. 

 It drives me nuts when I email my point of contact to find they don't work there.  Or I have this person for x, that person for y, and another person for z.  Or when you don't always have a property in inventory to have your account closed out and when you go to add the next property find your account is no longer there and you have to get reset up and pay a new deposit.

They use Lloyds of London as most of the companies I have worked with and their quote sheets seem to be the same coverage. 

I can't speak to their coverage for buy and hold, but I do think that for every service - Insurance, Title, Contractors that you should get a new quote from fresh blood every few years.  You might find your tried and true person has slowly been increasing your pricing or may not have quite the same customer service that they did when you started.  You might find that what you have is still the absolute best and you might also find that they are not.

Good stuff @Kim Tucker

So in this post, all of these companies have been mentioned:

  • Arcana
  • American Modern
  • State Farm
  • Shelter
  • Liberty Mutual
  • USAA

Has any Kansas City investor had experience with other companies or specific agents?  Farmers, Berkshire Hathaway, Safeco, etc.

We had luck with Affinity (RE Guard) and Farm Bureau although recently got a better quote with Tilton, Thomas and Morgan. That being said, Tilton, Thomas and Morgan was able to get us a quantity discount so I'm not sure they would be great if you only have a few.

I also use with @Kim Tucker  I am frustrated due to the fact I have had multiple points of contact only to see the level of expertise greatly diminish as new employees come on board.  I do have buy and hold properties and I HAVE had a claim when the massive storms came through our area over a year ago.  I was directed by NREIG to take pictures and submit online a quote/repair cost from my contractor (they did not send out an adjuster).  They DID accept the quote and I received my check in a little over a month.  @Trent Kruessel  hope helps and let us know what you decide.

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