6 Unit Multifamily Insurance

[Joseph Lyons]

I'm closing on a 6-plex in Des Moines, Iowa, this November!!! Built 1890. Older roof. All units on separate meters. Seller has done a good job of keeping up with electrical, plumbing, fire safety, HVAC and general updates. My insurance agent that I've used for primary, auto, and my SFH rental has just quoted me for it. He's an independent broker and the best rate/coverage he found is 3400/yr paid in full, 3800 if paid monthly. I feel he acknowledged that the rate was a bit high. 500k of building coverage. Deductible isn't too low. I'm paying 194k for the unit. Replacement value probably doesn't need to be 500k, but even if we dropped it, the rate is still high. Does anyone have a good insurance provider that they can recommend that offers policies in IA? And are there any endorsements I need to ensure are part of my policy? Thank you!

[John Warren]

@Joseph Lyons you will definitely need to start shopping around on the insurance front now that you own commercial. Most of the agents out there are not set up well to handle commercial. Also, get ready for some sticker shock over time as commercial real estate insurance has been going up the last few years. In my area here in Chicago, I had an insurance policy go up around $1,000 per year on my 6 unit in Cicero. The building has brand new electrical that I put in and has mostly been replumbed. It is a solid brick building, but the replacement cost shot up due to the change in supply chain and construction costs.