Insurance. What do we need for multifamily properties?

[Javier Romero]

We are starting to look at plexes as it first investment. I'm trying to account for insurance in my cashflow calculations. I'm curious to hear how to best plan and budget for this.

What specific measures have you taken to manage and optimize the costs and coverage of insurance policies for your multifamily housing investments, and what advice would you give to fellow investors navigating this complex area of risk management?

[Charles Carillo]

@Javier Romero

Typically, you will set up a business owner's policy for a multifamily investment property. I would start making contact with independent insurance agents in the area of the property. Possibly ask other nearby landlords who they use as an agent. When you speak to the agent, explain what types of properties, in what areas you are looking for. They will provide you with an estimate of what to expect. Once you find a property that looks promising, ask the agent to get insurance quotes. Even if you do not get the property, it allows you to get an actual feel for pricing on your subject properties.