Property Insurance

What is the current environment for property insurance? This situation seems to have deteriorated, with the insurers providing less coverage, and charging more. I know a number of companies have dropped out, but does anyone have experience with either brokers or insurers in Indiana?
Are we all somewhat self insuring by virtue of high deductibles?
Thanks.

Comments(16)

  • norrist18th July, 2004

    Hopefully this article will help some:

    http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=438

    Best regards,

    Tim

  • rvrnorth19th July, 2004

    Tim,
    Thanks for the reply.
    steve

  • norrist20th July, 2004

    No problem. Hope it helps. Tim

  • rvrnorth24th July, 2004

    Polina,
    I cant pm. Haven't gotten around to that yet. Would be most interested in speaking with your broker asap. Can you e-mail me?
    Thanks
    steve

  • posherov25th July, 2004

    Sure thing! What's your email address?
    polina

  • rvrnorth26th July, 2004

    Can't post e mail. Called Auto insurance, and received a quote double that of state farm.As I say, insurance is out of hand, relative to the risk involved. This is an expense that others should check when buying property. Live and learn...

  • norrist29th July, 2004

    Find an Agent that can offer some creative advice on getting better value. Consider combining locations under one contract, if offered by the respective insurer. Many still do offer such policies. Also, look at $2500 and $5000 deductibles. Couple the savings with the fact that you aren't apt to file too many claims less than this...

    Tim

  • rvrnorth1st August, 2004

    The higher deductible results in reduced premium, that's true. What you paid in premium for 1000 deductible, is now what you pay for a 2500 deductible. More risk is assumed by the property owner at this point. We are playing the same game of risk management that the insurers are, only assuming more of the risks. I like the idea of a creative agent, but it's difficult to find one.

  • norrist3rd August, 2004

    Technically, yes, but realistically no.

    1. You probably aren't apt to file a $2000 claim , even with a $1000 deductible in today's insurance atmosphere.

    2. In larger claims, say, over $10,000, being in the REI business should give you access to contractors (if not yourself) to do work more on a "wholesale" basis. In other words, your $2500 deductible is "eaten up" in such a larger claim. There is power in holding the $7500 check up to 2 or 3 bidders for your repair job...

    Tim

  • edmeyer3rd August, 2004

    I have a property in Indianapolis also. If you want to PM me, I can give you contact information for my insurance broker.

  • John121222nd August, 2004

    Hello everyone,

    I dont know if this is a Unrealistic question.

    BUT...

    What does everyone pay for insurance per year for their properties? I realize this would differ from person to person, but I am interested in just some numbers to get a roundabout idea of what is a decent amount.

    I will start.

    I am looking to insure a 2 unit property in Indianapolis and I am expecting to pay about $2500 a year. The property would be worth about $70k. I am not thrilled about this price and I would like it to be lower (Duh) but I dont want to expect the impossible.

    Any comments on this?

    -Thanks!!

  • abbyewing23rd August, 2004

    I am also looking to insure a propety in Indy once i buy it. I am now in San Francisco.

  • abbyewing23rd August, 2004

    I am also looking to insure a propety in Indy once i buy it. I am now in San Francisco.

  • bgrossnickle23rd August, 2004

    In FL, a 70k property would be about $400 a year to insure. This is a property with central heat and air and electric and plumbing updates. This is hazard insurance, not home owners. We have hurricanes so I can not believe that your insurance would be higher.

    Brenda

  • loon23rd August, 2004

    If insurance is hard to get, esp. for non-owner occupied and/or rehab properties, find out if your state has a "pool" where anyone can get insurance (although usually at a higher rate).

    A partner of mine 'self-insures,' which basically means he buys no insurance for his 25 or so rental properties (none have bank mortgages that require insurance), and hopes the odds will keep him in the black. They have, and his properties are not exactly fancy ones. He's been doing this for over 20 years. Seems a little crazy to me, but we all have different risk tolerances.

  • davmille23rd August, 2004

    John1212,

    Something is seriously out of line if they are telling you it would cost $2500 to insure a $70k property. I just paid the insurance on a $95k house I own and it was only $350 and I also live in a hurricane area.[ Edited by davmille on Date 08/23/2004 ]

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