Insurance on multifamily?

Question

I'm trying to crunch some numbers for purchase of an 8 plex. Can someone give me an apx price for insurance? I know this varies greatly, just trying to get an idea. Thanks so much!!

Shannon

Jeff Greenberg · Answer

It depends if you are in an area that is prone to natural disasters. I usually budget $250 per door per year on the low end and $500 on the higher end. I did have a property in Houston that we paid $800 per door.

I hope this helps. You may also want to talk to the current carrier.

I hope this helps.  You may also want to talk to the current carrier.

Gerald Grinter · Answer

@Shannon Cannon @Abram Howard and @Jeff Greenberg are correct. The $250 to $500 per door is the best formula. I usually give this to my prospect clients who need a quick quote (I usually tell them $350 depending on the age and condition of the building). Since you have more than 4 doors a personal lines policy is out of the question. A commercial policy is the only way to go. When speaking with broker make sure they understand that this is a business and work with you in this way and not just writing a dwelling policy for you. Best of luck on your new property.

Abram Howard · Answer

I would also recommend NREIG. You could also call your local broker and see what they could offer as many times it will be better coverage and they know the gaps to fill that would not normally be covered. I do work in insurance but I don't work for NREIG so I am not promoting myself or the company I work for. It really depends on how many properties you know and what size they are. As an investor, I highly suggest commercial insurance and not an Umbrella Homeowners as a lawsuit may not be properly covered, just an opinion, talk to your broker for specific coverages and needs.

Amy Verges · Answer

Hi Shannon, these estimates are not bad, but of course down here in South LA we're usually on the upper end and it can vary quite a bit (depending on location, property details, etc).  We write a lot of multi-family business (and I own multi-fam investment property myself), so I would be happy to help.  Send me a private message and I can give you my contact info.  Good luck!

Shannon Cannon · Answer

Thanks Robert!! I will reach out to them!!

Robert Leonard · Answer

Hey @Shannon Cannon, locally, I would call Kyle Carmouche at the agency that has his name in it, or @Amy Verges at their family owned agency for quotes.

You can also get a quote from NREIG.com pretty quickly and easily at their website or 800 number.

I know these people and company and I have no affiliate relationships with them.

Shannon Cannon · Answer

Yes, I would probably figure the high end estimate, but that helps a lot, thank you!

Michael Le · Answer

If the property is in Louisiana then I'd guess $500+ due to all of the previous water and wind damage claims.

Nick Goodwin · Answer

Depends on a lot of things... $250-$500 per door seems about right. Maybe just call up your local broker and ask for a quote.

Insurance on multifamily?

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