Roof cost, Insurance on rentals, etc.

[Jason Risley]

Hi Bigger Pockets,

I have quite a few rental properties in Orange County, CA. They all have loans on them. I am replacing a couple roofs in Orange County, CA and my cost is $16K to $22K. My roofers here will tell me that they will last 30 to 50 years. As a side note, most of my insurance policies for landlords are with Safeco and around $800 per year.

I also own a couple of rentals in OKC (Oklahoma). I understand the weather is very different. I have never been to OK. Neither of them have loans so I can get rental home insurance or pass. My insurance agent is telling me that roofs in OKC last 8 to 9 years and cost between $60K to $80K. That seems crazy to me. The insurance that I would be paying is around $2,600 per year. The insurance agents justification is that they will replace the roof after their nasty hail/ice storms which go bad every 8 to 10 years.

I understand labor costs are different in other states, but it's not like Home Depot charges different costs on materials. Can roofs really be that much more expensive in OK than CA?

Any recommendations on paying $2,600 for insurance or just taking the risk and when it's time to get a new roof, pay for it. 

Thank you, Jason

[Jason Bott]

Quote from @Jason Risley:

Hi Bigger Pockets,

I have quite a few rental properties in Orange County, CA. They all have loans on them. I am replacing a couple roofs in Orange County, CA and my cost is $16K to $22K. My roofers here will tell me that they will last 30 to 50 years. As a side note, most of my insurance policies for landlords are with Safeco and around $800 per year.

I also own a couple of rentals in OKC (Oklahoma). I understand the weather is very different. I have never been to OK. Neither of them have loans so I can get rental home insurance or pass. My insurance agent is telling me that roofs in OKC last 8 to 9 years and cost between $60K to $80K. That seems crazy to me. The insurance that I would be paying is around $2,600 per year. The insurance agents justification is that they will replace the roof after their nasty hail/ice storms which go bad every 8 to 10 years.

I understand labor costs are different in other states, but it's not like Home Depot charges different costs on materials. Can roofs really be that much more expensive in OK than CA?

Any recommendations on paying $2,600 for insurance or just taking the risk and when it's time to get a new roof, pay for it. 

Thank you, Jason

You need to carry General Liability on those locations at a minimum being an out of state investor. Cost per SFR would be $100-$150 /yr for $1M.