Insurance for my rental property

17 Replies | Memphis, Tennessee

Hi Memphis Investors,

I have a question about Insurance in the memphis area.  All my quotes are coming back at over 100.00 a month.  Is it something I'm not telling the agent that could get this number down?

Thanks BP

Originally posted by @Caleb Heimsoth :

@Mel Hayes how big is the house?  My 75k 1100 square foot rentals cost about 40 bucks a month 

The house is 895 Square feet.  Thanks Caleb.

Mel, that sounds extremely high for the size/zip.  Has there been a major claim on the house that causes it to be high?  Have you made a major claim on any other property that would cause you as the insured to have a high rate?  Is it in a flood zone?  and are they quoting you for earthquake coverage?  I'd be happy to recommend some local contacts for insurance if you'd like another opinion.

Im not familiar with the TN, but am an insurance agent in Missouri. It really depends how much of the risk you want to carry yourself. A lot of the insureds that I have that have landlord policies carry a high deductible or just have an ACV (actual cash value) policy instead of replacement cost.  Landlord policies can be high.   

Talk to your agent that you carry your personal home and auto through.  Some places will give discount for multi policy. Require your renters to carry renters insurance.  Some carriers will take that into consideration when rating a policy.  If you are married and your wife has a better credit score, have them quote it in her name.  

Just some suggestions.  

Originally posted by @Heather Horton :

Mel, that sounds extremely high for the size/zip.  Has there been a major claim on the house that causes it to be high?  Have you made a major claim on any other property that would cause you as the insured to have a high rate?  Is it in a flood zone?  and are they quoting you for earthquake coverage?  I'd be happy to recommend some local contacts for insurance if you'd like another opinion.

Thanks Heather,

The answer to all your questions is No. LOL... I would welcome you sending me a contact.

Thanks,

Mel

Originally posted by @Caleb Heimsoth :

Mel Hayes I own rentals in that zip code. I’m guessing you’re overpaying. The area in that zip code can vary a lot though

 Well, I have this policy for 6 months... after that I will do a better job of shopping around.

The zip code 38111 has some good and bad areas so it depends on where the house is, size, year etc.  Have you made any major improvements to the home like roof, replaced furnace, air conditioner, etc?  You definitely want to shop around for estimates next time.  I have an investor with a home in the same zip and he pays $600 a year.  He has a 3 bedroom 1.5 bath home with about 1400 square feet built in 1955.   Of course I have no idea how your home compares to his in terms of location and size, etc. 

@Mel Hayes standard Landlord policies are not 6 months, but Builders Risk policies are.  Is the property currently occupied?  If not, and it is being renovated or just vacant, then that could be the reason for the higher cost.

Originally posted by @Jason Bott :

@Mel Hayes standard Landlord policies are not 6 months, but Builders Risk policies are.  Is the property currently occupied?  If not, and it is being renovated or just vacant, then that could be the reason for the higher cost.

Yes it is vacant but I dont think he took that into consideration.  When I say 6 months, i paid for half the policy.  

Originally posted by @Verna Littleton :

The zip code 38111 has some good and bad areas so it depends on where the house is, size, year etc.  Have you made any major improvements to the home like roof, replaced furnace, air conditioner, etc?  You definitely want to shop around for estimates next time.  I have an investor with a home in the same zip and he pays $600 a year.  He has a 3 bedroom 1.5 bath home with about 1400 square feet built in 1955.   Of course I have no idea how your home compares to his in terms of location and size, etc. 

 Yes, mine is not as large.  I think once I shop around for different quotes Ill find out more info about why Im paying so much.

@Mel Hayes if it is a standard insurance carrier, you may be able to switch before the 6 month period is up without penalty.  Probably worth looking into and switching once the property has a tenant in it.

Good luck

Originally posted by @Jason Bott :

@Mel Hayes if it is a standard insurance carrier, you may be able to switch before the 6 month period is up without penalty.  Probably worth looking into and switching once the property has a tenant in it.

Good luck

Definitively going to look into this.