How do you estimate insurance costs?

Rich_in_CT · January 22, 2006, 5:43am

Is there a general formula to determine what insurance costs will be? It would definitely help me out in checking the cashflow of a property…

campbellgroup · January 22, 2006, 5:55am

no not really. I just call an ins co and ask for an estimate of a made up house and they give me a ballpark idea .realators and ins. co’s . hate me I pester the heck out of them ;D

Rich_in_CT · January 22, 2006, 6:10am

I really don’t want to spend 100 hrs on the phone. :-\

campbellgroup · January 22, 2006, 6:17am

If you know what your ins. is and the property is similar to the one you own use that as a guide for ball park figures

Rich_in_CT · January 22, 2006, 3:56pm

I don’t currently own, I rent. :-\

campbellgroup · January 22, 2006, 4:00pm

Ask the person that you are buying from what they are currently paying so you have an idea what to expect.

Dell_Investor · January 22, 2006, 4:23pm

Just call your local agent and tell them you are looking to purchase a residence and rent it out. Tell them you need to get a quote for a landlord policy on the property and give them the figures for replacement costs, liabilty and deductible. It should only take a few minutes to do this and you get a fair market idea. It is a good idea to let the agent know it is for a landlord policy as some companies will only insure rented properties if they insure your primary residence. No use getting a quote from an insurer if they can’t or won’t underwrite your policy. I know as I am an insurance agent and handle property and casulaty, etc, etc, etc. Good luck.