Insurance For Investment Properties
Does anyone have any guidance on how to buy insurance on investment properties? I have talked with the company that provides me insurance on my home. They have quoted me a rate which is three times my personal residence's rate for my investment property which I am purchasing at less than half the cost of my residence!
Get on the phone and internet and get 10 to 12 quotes. I got quotes from $2000 to $600 per year on our $450,000 home from the exact same company. I took the $600 quote and am saving $1400 per year. You can do the same
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Yeah,
Insuring investment property can be a bitch. The carrier on our residence wouldn't touch it - period but after shooping around, we got the minimum coverage for about $1,600 a year on a $130,000 investment property. Happy hunting and holiday.
C-
The carrier on my primary residence referred me to an old collegue who specialized in insuring investment property. Since I am rehabbing my additional property, it will be vacant until I rent it out. While the house is vacant, my yearly premium in a little over $1000. But as soon as I rent it out, the premium drops to $300/year, and I will get a refund.
You'll find someone, keep looking 'cause they are out there.
Thanks!
In my area, there are a few insurance companies that have a rehabber's policy in which you have 30 days to start work on the property and 60 days to lease-up. This is great, considering the cost of a vacancy policy. Check around.....you could be getting screwed!
Just my 2 cents...
You get that for which you pay. If you want "cheap" coverage, expect "cheap" protection. It is difficult, if not impossible, to compare insurance situations in different areas, let alone different states. Many variables determine the rate. Insurers consider things such as: construction, age, credit history, fire protection-class, claims history (you and the property), etc., etc., etc...
Also, be wary if you extend your liability coverage from your home. You put not only your personal insurance at risk, but also your personal assets.
Check into a higher deductible, say $2500 or even $5000. Use the deductible as a cost-savings mechanism, not denying or shortchanging the policy itself (and potentially you in the process).
The best "rate" usually doesn't equate to the best, or even the proper, coverage. Work with an Agent that is famiiliar with the RE profession, Independent or not.
I have been bit by this issue. I basically gave in and pay it. For my 2 flats in Chicago I pay between $1,500 to $1,800/yr for each one of my properties.