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!
That is high I’m paying 566 for $164,000 for a tri plex with 500,000 liability but thats in ohio
You don’t say where you are…the entire Gulf Coast just got crushed with insurance rates - if you can even find an insurer. I went from $250 - 270 a year (with USAA) to $824 a year with another company becasuse USAA decided not to insure more than 2 properties for any one person.
Keith
Ouch, that big of a jump can hurt, or even eliminate positve cashflows.
that quote looks high but not crazy. The $1M liability might be driving it real high.
That is actually very close to a quote I received for an 8-unit plex. I thought however that commercial was only required for 5+ units??