Hi. I just got a quote for insurance on a 4-plex from my insurance co. that I insure everything with. They quoted $1500/yr. for a $160,000 dwelling, $1,000,000 liability and a $1000 deductible. The purchase price is $160,000 (land and dwelling). They said since it was a 4-plex it would be treated as an apartment complex. The current owners pay half of what they quoted me. Does this seem kind of high or are they in the right ball park?
Thanks!
I don’t have any experience with 4-plexes. However, I know that anything of 1-4 units is treated the same with regard to Real Estate laws. Is the property 100% non-owner? That may cause a rise. My suggestion is to call around. I tried to get insurance on a property in FL for a Non-owner SFR. I was quoted $1200/year! I called another agent and they quoted $1000/year. I then informed them that it seemed high and that the agent that referred me said he was paying much less than that. Suddenly my quote came down several hundred to about $600/year.
Does that quote include a landlord policy AND an umbrella? Two seperate policies. Not sure what market you are in, but I know that for a SFR in my market you can expect anything from $450-$900/year. That is without an umbrella coverage. An umbrella policy can run as little as $300 in my market but will depend on what you have covered under the umbrella.
I was paying $250-260 a year for single-family investment properties through USAA but they decided that you can only insure your private residence + 2 rental units through them. I went to other agencies but because of the hurricanes, the rates went outta control. I insured a single-family a couple of weeks ago and had to pay $824…wow, what a deal! Only a 320% jump! Guess whose rent is going up…???
Keith