Hazard Insurance for Class C- Property

[James H.]

We several years of experience with a handful of Class B and B- properties.  Yearly hazard insurance cost has been approximately 1% of the home's value per year here in North Texas.

We just bought an older "tiny" house.  It is 320sqft in a Class C- area.  We bought it with a credit line and it rented quickly for about 2% of what we bought it for.  (Beats the 1% rule, as expected for a Class C-.)

The big surprise has been property insurance.  The quotes we are getting are about 3 - 4% of the home's value. 

Is this typical?  Any suggestions?