Real Estate Investor · Malden, MA · Member since 2014 · 11 posts · 4 votes
I have been trying to get quote for insurance for a 4 unit multi-family investment property in central MA area for a few days, and did not have any luck so far. I called a few insurance companies and none of them insure properties with reconstruction values more than $600,000 (the cost they estimate). My current insurance agent I insured my home with also could not find any carriers they do business with that are willing to insure this property. I read previous posts about insurance but they are mostly for different areas of US and I don't know if their answers will apply. Also, I do not know if I'd better go with a regional or big insurance company. Can you guys provide some pointers? Thanks.
Real Estate Agent · Naperville, IL · Member since 2013 · 402 posts · 177 votes
12y
If you are estimating, I have always used purchase price/1000*3.5 to get a rough idea. It usually is pretty close to what price will be. 600,000/1000*3.5=2100. Its def not 100% but usually gives a rough calculation.
Haverhill, MA · Member since 2009 · 293 posts · 157 votes
12y
I've used Liberty Mutual on mine recently. They will issue a quote and can do so over the phone. We just did one that had a reconstruction amount of 850K so you would be good.
Real Estate Investor · Malden, MA · Member since 2014 · 11 posts · 4 votes
12y
@Ann Bellamy Thanks for the info! I'll definitely reach out to Tim. BTW we briefly talked last time on the Waltham Black Diamond meeting. The meeting was amazing and the amount of information and networking was great. Hope to see you next time in Worcester or Waltham.
@Josh Mitchell Wow that seems like a convenient formula! I am well aware of the 70%, 50%, and 1 and 2 percent rule, but not this one! Good to know.
Real Estate Investor · Malden, MA · Member since 2014 · 11 posts · 4 votes
12y
@Rob L. just to compare, would you mind telling the premium amount for that $850K reconstruction property? I received a quote from Liberty Mutual and their rate is outrageous - $6500 per year for my property ($1.2M reconstruction)
Haverhill, MA · Member since 2009 · 293 posts · 157 votes
12y
Hi @Jeff Zhou , I believe it was around 3k originally but we worked it down to just over 2k. Their definitely not the cheapest but it sounds like the agent is insuring you for the entire reconstruction amount. I would check with your lender as some have restrictions but your rates will go down if you just insure up to the loan amount or whatever the minimal amount required by your lender is.