Almost $350 per month for insurance??!

[Joel Oh]

Hello guys,

I just purchased a four plex in St.Paul, MN.

I am planning to run it as mixture of short term and long term rentals since there are existing 2 long-term tenants.

I got the quote from my usual insurance company and what seriously?

They gave me quote of $4000 for smaller than 3000 sq ft house!

I understand this is over 100 years property but seriously $4000?

I got a second quote from a different company, and they gave me close to $4000 as well.

This is blowing my mind. I was expecting maybe $2500~3000 but w.o.w.

Insurance is seriously making me to consider flip instead of renting. 

Is there any insurance company that covers short-term and cheaper in MN? 

[Hoi L.]

My 100 yr old 5-plex is being insured at $3,700.  So your quote is not too far off.  It was found by my insurance broker that is my longterm insurance broker for my primary residence and multiple-cars.

[Cameron Moore]

if you did not go through an Insurance broker already, you are dealing with insurance with both hands tied behind your back. Go that route first as they can shop multiple options. Sometimes certain companies do not want certain risks so the rate can be outrageous. 

[Kevin Hoag]

@Joel Oh When it comes to insurance companies they are not all created equal and certain companies target specific types of insurance. Even though you may have got quotes with multiple carriers if you did not go to the right insurance carrier that wants to build a landlord book of business you will not be offered the best rates. The more units you have the greater the risks become so the rates do go up. A 3000 sq ft single will always be cheaper than a 3000sq ft 4 unit. If you have a specific questions about a carrier or coverage items let us know. BP family always here to help.

[Bill Brandt]

If $1,000 extra per year is making a deal questionable you should definitely bail on it. That’s one appliance and with 4 units you will probably lose an appliance every year or two. It’s $20/unit price month. I assume you asked for a quote with $2500 vs $5,000 deductibles? (Since you’re obviously not going to make any claim under $10,000 anyway.)mi also assume you asked the previous owner and the owner of nearby buildings who they are using and what they are paying. 

[Caroline Gerardo]

4 units maybe 12+ people there at a time to make mistakes such as leave the tub running and flood downstairs, toss sparklers out the window and set the patio on fire, or dishwasher clogs and over-flows while they are gone... STR is much higher risk.

Find a Mutual of Omaha broker in MN? I like all my insurance with one broker who shops and advises every year. We have a chat in January.

In the purchase process contact your broker day one in contract, long before you close/ providing them the appraisal gives you accurate pricing for your project.