Why is the insurance so high for my 4-plex?!

[Fay Chen]

I'm closing on a 4-plex in Dallas and just got a sticker shock for the homeowners insurance. My broker quoted me $6800 per year! Even the current owner is paying $5700! So I asked my broker to shop around more. Is that the norm? Why is it so high?! Now my COC is only 5% :(

Here's some info on the property:

Purchasing Price $298K, 4-plex, 2 bed 2 bath each all in one building. Built in the 1980's. Location: North Dallas