Folks,
Do you know of any insurance companies that work with LLC’s? I got one quote from a broker and he said 600 bucks a year because its only one property and it’s under my LLC. He said he could do much better if the property was in my name as he could lump the coverage along with my personal residence. This is my first rental but I think that rate is high for some reason. Any thoughts?
Nate-WI
What is the coverage amount?
Explain the different types of coverages?
Nate-WI
Dwelling is what the lender is concerned with for the most part. There is also rent loss coverage (usualy 6 months).
Flood if you are in a flood zone.
Personal liability
etc.
I just got off the phone with my broker. He said the best he could was an 80/20. 80 is at 8% while the second is at 14.25%. A blended rate of 9.5%? No thanks. So I’m gonna use a local bank in town. The seller, who is a realtor and also who I do business with, is gonna take back a forgiveable second of 15%. The bank is going to finance me at 55K with an 8% interest rate.
Nate-WI