Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Minnesota Real Estate Q&A Discussion Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 3 years ago on . Most recent reply

User Stats

13
Posts
3
Votes
Heather K.
3
Votes |
13
Posts

homeowners insuance on duplex

Heather K.
Posted

Hello all,

I am purchasing a duplex in Minnesota for $90k and the appraisal value is $100k.  I'm working on getting insurance but the companies I've called want to insure it for the replacement cost of $340k.  I really don't want to pay the premiums for that and looking for an insurance company that will allow me to insure for the value, not replacement cost.  Does anyone know a place in Minnesota that will do this?

Most Popular Reply

User Stats

2,175
Posts
1,204
Votes
John Mocker#1 Insurance Contributor
  • Insurance Agent
  • Norwalk, CT
1,204
Votes |
2,175
Posts
John Mocker#1 Insurance Contributor
  • Insurance Agent
  • Norwalk, CT
Replied

Heather,

Following what Jason Bott explained and looking at the numbers you gave, I would estimate that the depreciation is somewhere in the 70% range ($100k depreciated value vs $340,000 Replacment).  That means you would be facing a 70% reduction in your claim.  For $100,000 in damage you may only be paid $30,000.  That is a lot to come out of pocket.  

Sometimes, going with very high deductibles on a Replacement cost policy can get you closer to the premium you can live with.  Have them quote $5,000 and $10,000 as an alternative.  There you would get $95,000 or $90,000 on the $100,000 loss.  The downside of the high deductibles comes if you have multiple losses.

Loading replies...