Insurance Policy for rental properties

2 Replies

Hi Everyone,

Not sure if this has come up before but I have a question regarding insurance policy.

I have a few rental properties, multi families (2units) and single ones, under an LLC located in PA.

How much are you guys paying for a property?

I would like to compare and adjust if needed the coverage if I'm paying for unnecessary coverage. My multi families policies are anywhere between $1100-$1300.

And $500-$900 for the single ones.

Regards,

Andi,

This comes up all the time. As investors our goal is to lower our expenses and maximize our profits. Insurance premiums depend on many factors. One of the biggest rating factors is the Zip Code. The same property quoted the exact same way just in 10 different zip codes could result in 10 different prices. If you have individual policies the price may be higher than a commercial policy. Your ranges are about right. Singles $400-600(B class), $600-800(C class) $800+ (D-F class)
Duplexs can run $800-$1500
Triples can run $1100-1700 Quads can run 1400-2k

@Andi Ndini My fellow Ohioan @Kevin Hoag is correct - geography will change the price but so will coverage. 

Do you have loss of rents? ARV or cash value? High or low deductibles?

These are all things that are going to change your premium. Find out what your risk tolerance is and adjust your policies accordingly. 

Best of luck!

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