Why is LLC Investment property Insurance so High?

[Alex Get]

In my name I have some investment properties which are from 4Bed/2Ba SFH to Duplex and all of them are rental property, the coverage is replacement value and the highest property insurance among these are $735. Now my investment property is expanding and I suppose to form LLC,and in last month I purchased the first investment property in the LLC name.Here is some details of the coverage, its dwelling- fire,extended,and liability in the same city with the other properties.What I can say is except premises liability,and vacant house, every thing else is almost the same coverage with the others.The new house is 3Bed/1Ba SFH. what wonders me is the insurance quote for the LLC Property that I got today,Guess what, the insurances quote that I received today is $1968.70.Since its a business i was expecting a bit higher than other properties but as you see it is way higher than the others.I wounder if you went though like this and what do you think, is this quote normal for LLC investment property insurance?.

[Jason Bott]

Originally posted by @Alex Get:

In my name I have some investment properties which are from 4Bed/2Ba SFH to Duplex and all of them are rental property, the coverage is replacement value and the highest property insurance among these are $735. Now my investment property is expanding and I suppose to form LLC,and in last month I purchased the first investment property in the LLC name.Here is some details of the coverage, its dwelling- fire,extended,and liability in the same city with the other properties.What I can say is except premises liability,and vacant house, every thing else is almost the same coverage with the others.The new house is 3Bed/1Ba SFH. what wonders me is the insurance quote for the LLC Property that I got today,Guess what, the insurances quote that I received today is $1968.70.Since its a business i was expecting a bit higher than other properties but as you see it is way higher than the others.I wounder if you went though like this and what do you think, is this quote normal for LLC investment property insurance?.

 Alex, a few comments.

1.  you say “what I can say is except premises Liability and Vacant house, everything else is the same”. Policies for Vacant buildings are 2-3x’s an occupied rental.  Ask your agent if you were quoted a Vacant building policy.  If so, you should be able to switch once the property is rented.

2.  Insurance companies that specialize in Home and Auto can handle a few properties, but are not competitive with commercial policies as that is not their target market.  

3.  Once you have 5-6 rentals, get some quotes for a commercial portfolio policy.  You may be surprised at the rates.  Also, you can have multiple entities on one policy as long as their is common ownership