MF Insurance Costs (New York State)

[Megan S.]

Hi all,

I'm in the process of buying a triplex in the Hudson Valley and insurance quotes are coming in between $2000-$2500/yr (current owner pays $2400). This seems crazy high to me, as I insure my Portland, OR duplex for $548/yr, and it's worth roughly $250k more (market value) than this place in the HV.

The insurance broker I'm speaking to claims I have to get a full-repair-value policy (not a market-value policy), and estimates for a rebuild are coming in between $360k - $800k. Obviously, it would make no sense to rebuild at that cost if the final (new) building would be worth no more than $300k on the market.

I read this excellent post by @Paul Caudell that helped me understand the terms a little better:

https://www.biggerpockets.com/forums/432/topics/18...

So I guess what I'm looking for is an RCV policy that insures me up to the market value of the property, not the estimated rebuild cost of the property. But I'm not sure if NY state allows this?

Anyone have any experience shopping around for rental property insurance policies in NY state?

Thanks in advance for any input!

Megan