Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

9
Posts
0
Votes
Kwangmin Kim
  • South Lyon, MI
0
Votes |
9
Posts

Rental Property Home Owner Insurance and Tenant Insurance Related

Kwangmin Kim
  • South Lyon, MI
Posted

Hi Real estate savvies,

I am closing one rental house in Redford, MI, Dec. 2016 and trying to find out the best home insurance and tenant insurance. I mean economically because it is really dollar game to maximize my profit. I contacted a few insurance companies and got shocked because their rates are so high.

I am sure I am doing something wrong because the home insurance cost at Trulia and Zillow are very low. 

Is there anybody which company and plan are the best for this case? My property is less than 1,000 square feet and buying at $47K. 

Your two cents tip will be highly appreciated.

Andy Kim

Most Popular Reply

User Stats

2,494
Posts
1,431
Votes
Jason Bott
#2 Insurance Contributor
  • Insurance Agent
  • Nationwide
1,431
Votes |
2,494
Posts
Jason Bott
#2 Insurance Contributor
  • Insurance Agent
  • Nationwide
Replied

@Kwangmin Kim the premiums quoted on Zillow are most likely for a Homeowners policy and not a Rental/Landlord policy.

With a single SFR, you will be paying probably $800-$1,000 per year. Once you get a few locations, you can get that premium pushed down to $400-$500 per year.

  • Jason Bott
  • User Stats

    23
    Posts
    14
    Votes
    Chad McClain
    • Investor
    • Livonia, MI
    14
    Votes |
    23
    Posts
    Chad McClain
    • Investor
    • Livonia, MI
    Replied

    Take everything on Zillow & Trulia with a grain of salt.

    I have a property in Redford that is a little larger than what you stated and I pay north of $1,000/yr. I compared against a few companies (2 of which I have current policies with).

    Note: You should only be getting landlord insurance, the tenants will be responsible for acquiring renters insurance.

    User Stats

    2,494
    Posts
    1,431
    Votes
    Jason Bott
    #2 Insurance Contributor
    • Insurance Agent
    • Nationwide
    1,431
    Votes |
    2,494
    Posts
    Jason Bott
    #2 Insurance Contributor
    • Insurance Agent
    • Nationwide
    Replied

    @Kwangmin Kim the premiums quoted on Zillow are most likely for a Homeowners policy and not a Rental/Landlord policy.

    With a single SFR, you will be paying probably $800-$1,000 per year. Once you get a few locations, you can get that premium pushed down to $400-$500 per year.

  • Jason Bott
  • BiggerPockets logo
    BiggerPockets
    |
    Sponsored
    Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

    User Stats

    36
    Posts
    19
    Votes
    Brien OConnor
    • Investor
    • Lampasas, TX
    19
    Votes |
    36
    Posts
    Brien OConnor
    • Investor
    • Lampasas, TX
    Replied

    As an insurance agent, yes, you only need to buy coverage for your property.  Costs can vary from company to company but the rates @Jason Bott and @Chad McClain are providing are pretty accurate. I can't speak for the costs going down substantially with more locations. All locations are rated separately. I recently closed on a 1930s (or there about) home which needs new wiring and plumbing. I'm paying about $1100 a year. It's a 3-2 SFR with 1750 sf. It will be lower once I give my company proof of the new wiring and plumbing, but only maybe $100-$200/year.

    And yes, definitely require your tenants to purchase Renters Insurance and provide proof.  That's relatively inexpensive and is important for them (and you). 

    User Stats

    9
    Posts
    0
    Votes
    Kwangmin Kim
    • South Lyon, MI
    0
    Votes |
    9
    Posts
    Kwangmin Kim
    • South Lyon, MI
    Replied

    Thanks all. Wow.. the landlord insurance is much higher than I thought. Hm..

    Anyway, thanks alot