Hello BP Community - I am looking to insure a brick 3250 sq. ft. 4-unit in Midcoast Maine and the best quote I've found on a DP3 policy is $1,700, which includes full replacement cost of $564k, 10% rent loss, $1 Million liability, $5k personal property, $5k medical, $5k deductible.I understand that rates vary by region, so would any New Englanders, or Mainers specifically, care to weigh in or recommend an insurance company.Do most of you carry DP3 policies on your 1-4 units? 

I'm sorry for your loss.

For me a property must bring in at least 1% per month in gross rents and hopefully 1% of effective gross rents (after a 5% vacancy and 2% collection loss).  

Most smaller properties can not absorb the potential 3 month loss of income at the lower rents the market dictates vs. the initial investment costs and be as profitable as this potential.Owner occupied duplexes are numerous here, with few large multi-families.

The IRS lets you claim uninsured casualty losses like this, provided you can justify the loss.  

It's win for the guru but loss for the newbie.

I would imagine the bare minimum would be that the past 2 yrs tax return would reflect rental income for the investment unit(s), as well as not claim business losses etc for the primary residence unit.

Phillip has told me that he shows loss on his tax returns for last 20 years because he had a huge business with China 20 years ago and he lost it over 1M, that's why he was writing the loss off every year and he had not to pay any taxes because of that loss:-)Thank you very much, Phillip Bundy for this lesson!!!

The Profit and Loss sheet, along with tax returns tells the story, even if you have to go back a couple of years.  

The savings, if I was to go the cost value way, wasn't worth the loss of sleep for me.