I've been having a problem these past 5 years that I've managed my dad's fourplexes. There are supposedly only two insurance carriers who are willing to insure these buildings, and they are charging me 4,000 per year per building. They quoted 5,000 for another building we were considering buying. More reasonable quotes should be around 1200-1500 per year, and none of these joker insurance agents can tell me what the reasoning is behind the high prices I'm paying or why they can't find other insurance carriers to insure the buildings. Has anyone else had this experience?
I feel like the price of everything is outrageous right now but $1,200-$1,500 is in line with mid-range SFH in my experience so I'm not surprised multifamily is much higher.
I feel like the price of everything is outrageous right now but $1,200-$1,500 is in line with mid-range SFH in my experience so I'm not surprised multifamily is much higher.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
10mo
@Mark J.
I use to have a 4-plex and multi-unit buildings and the rate was way below that. I mostly invest in sfh. My rents are under $1000 annually except for Florida properties. You might want to try Steadily and or NREIG (National Real Estate Insurance Group).
Insurance Agent · Member since 2020 · 177 posts · 76 votes
10mo
Mark, this is a common frustration with risks of this type the last few years. May I ask, why do you think it should only cost $1,200/year to insure a 4 plex building? This goes without considering the type of coverage, deductible, and so on.