Insurance on a 4-unit - Commerical Policy?

[Phil C.]

I am purchasing a 4-unit building and requested a quote for the building. My state-farm agent has told me that over 2 units I need a commercial policy and a separate commercial liability umbrella (I already have 1MM liability protection on my other duplex investments).

The quote at 90% of replacement cost ($322k), 12 Month rent loss and $5k Deductible is $2,968. $1k deductible is $3,289k. This does not even include the $1MM liability umbrella which adds another $215.

I thought that this seemed very high.

What do you guys think? What are you paying on your 4-units?

Regards,
Phil