Insurance Costs for Multi-Family - How to predict costs

[Aaron Lawson]

Hi all,

How do you 'ballpark' evaluate your insurance costs on multifamily to determine if you are getting a decent market price? Is it simply looking at the ratio of insured value-to-annual premium? Is there any sq ft or other basis for comparison that you use? 

Thanks in advance,

Aaron

[Gino Barbaro]

@Aaron Lawson

The best advice is to shop a few brokers in your market, and compare apples to apples.  We finally found an excellent broker, he's not the cheapest but not the most expensive, but he is very responsive and is always looking for ways to save money.  He also makes sure we have comprehensive coverage.  An employee stole from us last year, and it was covered with no deductible. We had a fire on one of the units, had business interruption and got paid.

All markets are different in pricing, a general rule of thumb is around 250 per unit.

Best

Gino