Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
I always know that getting insurance on a property was a pain. Now:
-- the statewide rates went up 23% in one year.
-- the last duplex I got, they would only insure it for sales price ($46K), not replacement value
-- the current 6 family I am closing on, a newer good shape building in a good location, the quotes are coming in near 10% of the rental price, and some were worse. I was turned down by 2 companies, one because "the primary firehouse is volunteer." Even thought there is a paid firehouse the same distance away!
I am getting "grilled" on things like 1 or 2 floors? Any decks? Do you have any of the 5 following things in your contract? Monthly? Property manager on site? And a host of other things. Nothing related to credit or prior claims, etc.
And we thought FINANCING was the hard thing to get!!!
Detroit, MI · Member since 2009 · 114 posts · 40 votes
14y
Sometimes it helps to work with an insurance agent who has decided to make investment properties a niche in the agency. We usually have more awareness of what insurance companies will write your policy and we are constantly looking for new companies that offer policies that fit our insured's needs.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
14y
Well after bouncing around with 3 different agents (all of who represent various commercial insurance companies), I got an unexpected pretty good deal. $1700/year for a newer 6 family with $2100 monthly gross rental income, $500 deductible and $1M liability. The middle was $2100/year. The worst was $2450/year, (and for only $2500 deductible and $300,000 liability).
It pays to shop around, a lot. I advise people to use SEVERAL independent agents. Some of these insurers are truly no names, and there are a number of them.
Reminds me a few years ago, I found a car insurance company that reduced my rate 40%, and that was down from a Progressive policy. They were very small and only served NJ, PA.
Would have been nice to get more participation on this thread, as insurance can now be something like 10% of the annual gross rent. Not something to gloss over.
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
14y
Most major carriers have lost money over the past few years due to a soft market, huge cat losses and below average investment income. The insurance market is hardening and underwriting and loss control are much pickier than they were over the past 5-6 years.