Help! Multi family insurance quotes are crazy high!

[Max Amillion]

I’m new to multi family and looking to purchase 2 buildings on one parcel. Each building is located in Missouri and 9 units so 18 units total. We currently have history and experience in single family home rentals but not multi family. With building costs through the roof I get replacement costs being higher but, the replacement costs are coming in double what the market value is for the property. The premiums are going to kill the deal! Any suggestions of a good company with reasonable premiums. One that is NOT going to be problematic if we ever do have to have a claim. Basically I just want to be able to have walk away money of what we are paying in case of a total loss along with only having claims that would be above the $10,000 threshold and above. I’m only looking for highly rated insurance companies. Any advice or suggestions would be greatly appreciated!!!

[Bjorn Ahlblad]

We have been with Farmer's for years.........I shop every 2 years, or so. Right now I am working with a broker but don't see a reason to change. Like you said don't go with some cheap company that is reluctant to pay claims.

[Peter Nikic]

I used to estimate insurance at $500 per unit per year, but this can vary quite a bit, especially these days. 

I'm looking for good insurance companies/agencies in Chattanooga TN. Anyone have any suggestions?

[Seb Ko]

I would recommend checking out Amica. Not sure if they operate in TN though.

[Jesse Thurston]

I would find a insurance broker. We have seen good rates from local insurance brokers often enough to keep using them in the future. They're not always the best option as many must know instead of going direct, however they can get 100's of quotes in a small time frame. 

[Steve Vaughan]

Originally posted by @Bjorn Ahlblad:

We have been with Farmer's for years.........I shop every 2 years, or so. Right now I am working with a broker but don't see a reason to change. Like you said don't go with some cheap company that is reluctant to pay claims.

 I use State Farm.  Had no idea they did commercial lines until I asked. 

We insure 6 buildings with them.  All is pooled to $2M liability, even if one of the quads.  Bonus, not a single review and correct.  Other A lines I've used would come out and make  me 'upgrade ' a bunch of crap periodically. Worse, one summarily dropped me with a new 40 years old or less only across the board. 

Ask your resi insurer if they have commercial lines.

[Amit P.]

@Peter Nikic you can try American Insurance Managers, they have an office in Cleveland, TN. They are a broker…..

[Alex Olson]

Adam Schwery of Country Financial. He is based out of Kansas City but works all over. Hope that helps!

[Brandon W Panganiban]

@Max Amillion I would probably try to check with other investors in your investment location to see what brokerages are popular. As everyone else has said they seem to be unbeatable. I've had to make a total loss home claim with a brokered policy and had a very easy time. Especially relative to others with more well known insurance companies who had to fight tooth and nail. 

@Peter Nikic Cornerstone Insurance Group is a major brokerage here with a brick and mortar in Chattanooga and Cleveland. I do my personal stuff, business stuff, and investments with them. I can get you an email of someone that handles whatever type of investments you have here if you'd like.

[Peter Nikic]

Thanks Brandon, yes, I'd like to get a contact there. It's for a multifamily bldg in Chattanooga.

Originally posted by @Brandon W Panganiban:

@Max Amillion I would probably try to check with other investors in your investment location to see what brokerages are popular. As everyone else has said they seem to be unbeatable. I've had to make a total loss home claim with a brokered policy and had a very easy time. Especially relative to others with more well known insurance companies who had to fight tooth and nail. 

@Peter Nikic Cornerstone Insurance Group is a major brokerage here with a brick and mortar in Chattanooga and Cleveland. I do my personal stuff, business stuff, and investments with them. I can get you an email of someone that handles whatever type of investments you have here if you'd like.

[Brandon W Panganiban]

@Peter Nikic I'll DM you

[Laura Williams]

@Max Amillion

Guard Insurance might be one to try. The came in much cheaper than the other companies I was quoted on a 5 plex. It's a Berkshire Hathaway company. We did have a claim a couple years ago through them....had a garage burn down and they paid. We didn't have any issues with them. If you want to PM me I'll send you our agent's info

Another insurance company in Missouri I found that had cheap rates is Shelter Insurance. I don't know anyone who has used them to know how they are with claims but they seem pretty popular.

[Max Amillion]

@Laura Williams

We actually got a quote from shelter yesterday. The odd thing is the agent told us that the premium did not and could not include liability. He stated his underwriter told him unless we swapped our auto and home over to them they could not write the policy with liability on the apartments. Also he stated if we did move our home and auto over to them they then cap out the liability of the apartment complex at $500k. Said they have to have a 3rd party insurer do anything over $500k liability

[Laura Williams]

@Max Amillion

You might want to try a different shelter agent. From my experience with them each office is a little different. I had one shelter agent who told me no more than 500k liability (on a single family) and then I talked to another 2 shelter agents who could do 1 million in liability no problem.