Cost of Home Owners Insurance for a fourplex ?

Question

Hello BPers !       I am planning to buy a fourplex to house hack and live in one of the units and would like to calculate what the insurance will be.   This will be in Indiana or Ohio  and each unit is a 1 bed / 1 bath.    The square footage will be around 500 SF per unit or 2000 SF total.   The information given on Realtor.com seems to be very low.   How much will this insurance cost  ?       Thank you !

Mason Hickman · Answer

@Joe Gilroy

Contact a local insurance company and get a quote for that area. It will give you a good baseline for the future. My insurance provider allows us to enter the property information and get a quote online without binding or paying.

Max T. · Answer

@Joe Gilroy

Ask a real insurance broker for a quote instead of randos on the web.

Account Closed · Answer

I own property in several states and it seems like me the cost is about the same everywhere and the very most I pay per unit is $400 and that seems to be regardless of age, size, etc..

You definitely need to shop around and watch out for what insurance brokers tell you. I had a single family home in Las Vegas where my insurance company cancelled my insurance because they wanted me to paint the facia boards and I did not do the work fast enough. So, my broker who I had for 20 years told me he got me an excellent rate for $950 per year.

I was furious with my broker because he insisted he got me a great rate and the company that cancelled me was charging only $425 per year. So, I went to the internet and I got insurance from the first ad I clicked on and paid only $350.

So, if I can get an entire house insured for $350 in Las Vegas then a 4-plex has to be less expensive per unit than a house that costs $350.

In March 2021, I closed escrow on a 6-unit property in Hawthorne California and the total cost with Mercury Insurance was almost exactly $2400, or $400 per unit.

Charles Cooper · Answer

@Jack Orthman

Congrats on the investment. Hawthorne will definitely appreciate with the stadium done.

Brandon Sturgill · Answer

@Joe Gilroy it's almost impossible to set the standards for the property you will close on...the availability of inventory will dictate what you buy and where it's located...the odds of your "dream" property" actually existing are next to zero...and if you can locate it, maybe the condition or location is not where you want to be...I would keep more open criteria and when something gets close to your standard, jump on it.

Your insurance provider should be able to draw an estimate from your "ideal" property you can use as a template.

Best of luck

Joe Gilroy · Answer

Thanks to all for the responses  -  I will call a few Insurance Companies.

James Wise · Answer

Pretty low. Can easily do this in the $1k/yr range.

Cost of Home Owners Insurance for a fourplex ?

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