How do you estimate homeowners insurance cost?

[Teresa Phillips]

This is the first time I have posted here so I’m not sure if I’m doing it correctly but I have a question. I am currently saving and studying and hope to purchase my first property in the spring. I am relatively certain I would like to do a house hack with a duplex or triplex. One of the books that I read said as part of my education I should practice underwriting properties to determine cash flow to learn if the property is a good deal. I understand that one part of the cash flow equation is the cost of homeowners insurance. How do I estimate this cost when looking at a property online? If I were actually purchasing these properties I would get this information from my insurance company but since I’m just practicing I wonder if there is an equation to get a ballpark idea. I currently live in a condo so I have never actually had a homeowners policy for a regular home.

[Mitch Messer]

Hey @Som Jafari, welcome to BiggerPockets!

If you're just practicing, you can either use the quote from other nearby (comprarable) properties you've previously analyzed, or take the great advice of @Dan Maciejewski and apply a fixed multiplier to get a rough number that's close enough.

It's mainly when you're running financials for actual deals, and therefore must get it right, that you'll need to engage an insurance broker's help. (At least, until you've already built a solid relationship based on many, many referrals sent their way!)