Am I paying too much on my insurance?

Question

Hi all,

I have one rental in the DFW area, TX.

The house is worth about 140K. The landlord insurance is $135 a month with Safeco.

This year there was a pipe leak under the foundation which the insurance wouldn't cover.

In all the deal analysis I have seen, the insurance is always much cheaper.  What am I missing here, and am I paying too much?

Thanks in advance,

Yaron

Kyle J. · Answer

Premiums are going to vary based on things like policy coverage, deductible amount, claims history, etc. However, just based on the info you provided, that sounds high. (I pay $500-600/year for landlord policies on houses worth about about double that.)

I think it’d be worth your while to call around and get some other quotes.

Bjorn Ahlblad · Answer

@Yaron Avidan without knowing your policy details can't really evaluate alternatives. I shop insurance every two years and my broker knows that. It is worth doing as my annual insurance bill is over 30k. My guess is you are overpaying; but that is just a guess.

Matt Hendrickson · Answer

I'd give @Matt Moylan a call. He's licensed in all 50 states & could give you a competitive quote at the very least.

Curt Riffel · Answer

You save money by switching insurance companies every few years to avoid rate creep. Most times there is little hassle in switching as well. For a $140K house in DFW I would expect around $1,100/year if you pay all at once with a 1% deductible for anything including the roof. Sometimes the deductible is 2% for the roof, so shopping around can save you in this regard as well.

Daniel Y. · Answer

Hey Yaron,

I invest in the DFW area. I can tell you, I had Safeco once as well and they are just expensive in general out in that area. They were decent in the Southern California area. Like everyone else say shop around. First, talk to your broker, as it is the easiest and quickest way. If they can't lower it or it is only lowered by a few dollars, that is the best that broker can do, but that does not mean it is the best price out there. Second, you reach out to other brokers and hopefully they will have different relationships with other insurance companies that can give you a better price.

A few things that were mentioned, recheck your policy and see what you want for your next policy. Most are your basic dwelling and fire policies, so if you want plumbing then you need to check for that. Most dwelling will cover roof, but to some extent, so look into that to see what kind of coverage you accurately want. Is your property a half-duplex or connected to another building? If so, that will increase your premium overall, in case your building catches fire and burns the other property then they will come to find you.

Also, don't wait for your current insurance to end for you to get new insurance. You can switch anytime, so go save money as soon as you can.

Hope this helps,

Daniel

Yaron Avidan · Answer

@Matt R.thanks for the your useful information. I will look into the policy terms, deductibles etc.

Matt Moylan · Answer

Thanks @Matt Hendrickson

@Yaron Avidan I would be happy to connect with you to discuss your situation and learn more about your overall need.  Insurance is a tricky beast and can be written a number of ways.  Looking forward to connecting.

Yaron Avidan · Answer

@Bjorn Ahlblad thank you Bjorn, I will definitely check for way to get this insurance rate down.

Yaron Avidan · Answer

@Kyle J. Many thanks for that Kyle.

Am I paying too much on my insurance?

Most Popular Reply