I am paying about 900 for my single family homes for basic insurance with general liability. I feel like this is kinda of high. Anyone else able to chime in on rates and providers of home insurance for rentals, single family homes?
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
3y
Sam,
Not sure what you are referring to as Basic Insurance. With a rented single family home, I usually recommend a Dwelling FIre policy (some companies call it a landlord policy) with the following:
Building Coverage: Special Form perils and Replacement Cost valuation (Named Perils and/or Actual Cash Value would be less coveage)
Liabiltiy: Max limit the policy offers (usually $500,000 or $1,000,000) and with an endorsement for Personal Injury Protection (ie. Libel, Slander, etc.)
Loss of Rents: Enough coverage for 12 Months rental income
Contents: If you furnish any contents, yard equipment, etc.
Other Structures: A high enough to replace any detached structures
Other Coverage that may be important:
- Ordinance & Law (if you will have to rebuild to different codes)
- Service Line coverage (for underground utility lines/pipes that are outside of the foundation)
- Equipment Breakdown (for the systems)
If you have the recommended coverage and other coverage that are important, then you are not Basic. If you are missing or have lesser coverage then you should get quotes for the proper coverage. The rates you get from that search should tell you what is competive for your situation
Insurance Agent · all 50 states · Member since 2022 · 184 posts · 122 votes
3y
@Sam Booth I have clients that are paying anywhere between $500 and $10,000 annually for insuring one of their SFR. There are many many factors that go into the rate that you pay. not just about the home but the insurance company also looks at you the insured. Age of home, condition, style, construction type, cost to rebuild, flooring, roof age condition and material, siding, windows, HVAC system, plumbing, electrical, landscaping, driveways, and on and on. Carriers also base insurance cost on location, distance from fire hydrant, and fire station, police station.
The best thing for you to do is to contact multiple insurance agents, both independent and captive and see what their rates are.
But remember the cost isn't the only factor you should consider. making sure that your coverage makes you whole incase of disaster or a liability claim is way more important in my mind than saving you a couple hundred dollars/year.