Newbie Seeking Advice on 4 Unit Insurance - Columbus, OH

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Newbie Seeking Advice on 4 Unit Insurance - Columbus, OH

Mikael Winkler
Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes

Hello everyone!

I'm a new investor currently looking at a 4 unit property outside of Columbus, Ohio (Dublin). My question is in regard to insurance, in that, I know very little on how it works, especially for a multi family property. I'm just looking for a little guidance on what I should expect/look for.

Again, I am as unfamiliar with multi family insurance as one can be, so feel free to spare no expense in explaining it. I won't take offense!

Thank you!

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Jeff B.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y

Regardless of the configuration (2-4) or 5+ MFU, all rentals need a Landlords Policy.

Highly recommend Farmers.

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  • Jeff B.
    Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    Regardless of the configuration (2-4) or 5+ MFU, all rentals need a Landlords Policy.

    Highly recommend Farmers.

    1Reply
  • Matt Ryan
    Investor · Westerville, OH · Member since 2013 · 16 posts · 12 votes
    10y
    I'm in Columbus, as well. I've been able to find much better rates using an independent agent, as opposed to "the big guys" (Farmers, State Farm, etc.). They shop your policy around and get you a better rate, and you're not paying for the large advertising budget of the big companies. My policies obviously insure the building itself, but also include liability coverage in case someone were to get injured on my property and they also include loss of income coverage. In a scenario in which the building were to become unrentable for a period of time, the insurance policy would replace the rent income to pay the mortgage while the building was being repaired or whatever. An additional consideration for rentals is whether to insure for "replacement value" or "actual cash value". Most people have a replacement value policy on their personal residence because, even in a total loss, they want their home rebuilt. Replacement value will replace/rebuild the building in the case of a total loss. Actual cash value will only pay the value of the building, not necessarily enough to rebuild it. You may have to just pay off the loan and sell the land in the event of a total loss. Many older buildings would be much more expensive to replace than they cost, so replacement value policies are more expensive. Good luck!!
    1Reply
  • Preston Wengert
    Mesa, AZ · Member since 2016 · 10 posts · 1 vote
    10y

    @Mikael Winkler As full disclosure I am an insurance agent. I work for a brokerage company. Although I am not in Ohio, we do have a program that is specifically for real estate investors. ( my clients are the ones that got me interested in investing) I will post some specifics on here about the program tomorrow when I get to my office. The program is nationwide and we have lots of clients in Ohio.  

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  • Sean Dawson
    Investor · Columbus, OH · Member since 2015 · 134 posts · 48 votes
    10y

    @Mikael Winkler we just went thru this in CMH.  If you want you can PM me and I can give you any info I have.  In Dublin I would definitely want replacement value for your 4plex.  Hope you found a good deal there, it's tough to depend just on cashflow in that area without one.

    Sean

    1Reply
  • Mikael Winkler
    OP
    Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
    10y

    Thank you everyone for contributing! Today is pretty hectic, so I won't have much opportunity to really dig in on all this great information. I plan to later today/this evening. Thanks again!

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  • David Lucas
    Rental Property Investor · Columbus, OH · Member since 2014 · 63 posts · 9 votes
    10y

    @Mikael Winkler I can vouch for Sean. Take him up on his offer. Good luck!

    -David

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  • Ed W.
    Investor / Landlord · Columbus, OH · Member since 2015 · 276 posts · 174 votes
    10y

    @Mikael Winkler

    There is a Central Ohio landlord group you should check out this month because the main discussion will be important to not only landlords, but wholesalers, and newbies in general. The topic will “Buying Right” and will touch on determining value and what types of properties appeal to tenants and owner-occupants.This group has monthly meetings and is meeting this Thursday, March 24th. The meetings are well-attended, FREE and held at Tommy's Pizza on Dublin-Granville between Sawmill and Riverside. From 6:00-6:45 there will be a Q&A session primarily geared to newbies, then the discussion mentioned above and after that there will be networking. PERTINENT TO THIS THREAD, THERE WILL BE NUMEROUS EXPERIENCED INVESTORS THERE (AND, SOMETIMES, AN INSURANCE AGENT OR TWO) WHO CAN ANSWER SOME OF YOUR QUESTIONS AND/OR PROVIDE YOU WITH THE NAMES OF AGENTS WORTH TALKING TO.

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  • Mikael Winkler
    OP
    Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
    10y

    @Ed W. Thanks for the heads up! I'd definitely like to check that out! 

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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    10y

    Going with an independent guy is a great recommendation. They have multiple vendors to shop around to. I always call a few online too to see what works best. I'm always a fan of getting 3-5 quotes on a property. Give them all the info, price, occupied or not, etc and get a few detailed quotes. Works well here in Columbus. 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
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  • Mikael Winkler
    OP
    Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
    10y

    Thanks, @Robert Ellis! I'm definitely going to shop around before I make any decisions. And thanks everyone for giving me some great advice!

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  • Emily S.
    Veterinarian · Leesburg, VA · Member since 2014 · 32 posts · 12 votes
    10y

    @Mikael Winkler, did you decide what you wanted to do, replacement vs ACV on your fourplex? 

    I'm not in central OH anymore (but did do my internship at OSU!), but was shocked at a recent quote of almost $400/month for a fourplex. Just curious what you ended up doing and if you'd be willing to share a ballpark figure for what you're expecting to pay. 

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  • Laura Janosko
    Rental Property Investor · Cleveland, OH · Member since 2014 · 51 posts · 37 votes
    10y

    @Mikael Winkler I'm in the same boat, except I just purchased a triplex in Lakewood, Ohio. Would you mind keeping me posted about which company you decide on? 

    1Reply
  • Mikael Winkler
    OP
    Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
    10y

    Laura, I will most certainly keep you posted on whichever way I go!

    0Reply
  • Tony Ho
    Wholesaler · El Paso, TX · Member since 2016 · 33 posts · 7 votes
    10y

    You could contact a company that works with a bunch of insurance companies, they don't have a price just from one company so they can help you look at different sources and find you the cheapest and best policy that could fit your needs. I just switched my insurance and saved over $300. I did my search with Answers Financial and if you want to try, I can refer you to the agent that helped me.

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