Updated about 2 months ago on . Most recent reply
High 4 plex Insurance?
We recently purchased a 4 plex in Pennsylvania. It’s around 5500sft, brand new roof, built in 1973, updated in a great area with all new plumbing and HVAC systems. The building is probably worth around $550K. The place was also build great with cinder block walls in between each unit. We are quoted $315/Month. Is that high ?
Most Popular Reply
A way of lowering your premium is to absorb more risk yourself. Check your deductible and consider how you plan to use insurance. Setting your deductible low increases the risk to the insurance company and pushes your premium higher. Setting it high causes the insurance company to lower the liklihood of payouts and the size of the payout which lowers your premium. The downside of doing that is you are paying the deductible if you have a claim.
I consider insurance on my rentals as emergency coverage and set my deductible to 5% of replacement cost. That causes me to pay the first $10,000 - $15,000 of a claim and significantly lowers my premium as compared to a $500 deductible.
Ask for quotes with a high and low deductible if you are interested.