Insurance: How Much Is Too Much?
My first year at this and still getting my bearings. A few months ago I was able to buy two small apt. buildings, maybe 60-80 years old, for a good price. 7 units total, a 3 unit and a 4 unit. An alley separates them. They needed some work (and still do) but I got them fixed up and rented out, annual rents will be $30,000. I own them in an LLC.
Maybe it’s just that I’m new to dealing with big numbers (for me), but does it sound right that they should cost over $3000 a year to insure ($1m liability, $225k value of buildings, & loss of rents)?? I’ve asked around, and a surprising number of insurers won’t even take them on, they’re not writing commercial anymore, or only insuring newer buildings. What should I really be paying?
Due to the fact that there are 7 units that price is not that bad assuming that it is a commercial insurance policy.