Getting Eaten Alive on Insurance Costs--Help!

[Alfred Litton]

Hi All,

I own 4 SFHs each purchased in the last 7 months for approximately $85-$95K in the Wichita Falls market.  Problem is, the insurance is a killer!  Each property is running me around $1400-$1900 per year in premiums with a 1% deductible for RCV coverage. Even raising the deductible to 2% on each isn't much help.  Am I just cheap, or does this seem excessive to you all? 

I'm pretty sure this is a function mostly of the insurance companies' estimates for replacement costs.  ($140-$165K on these properties.)  I've shopped some different agencies, but not much luck getting lower premiums.  Is this normal or does it strike you all as expensive?

Thanks.

[Trent Honea]

I had the same problem a few years ago.  You'll find different agencies are better at helping investors than others.  My suggestion (this is what I did):  Put together a Request for Quote with the details on your properties, outline the coverage you need, send to as many area insurance agencies as possible, then compare the results.  In my case, 10 of 12 agencies responded, and the highest, middle, and lowest prices were all with the same underwriter!  I actually got a better deal by including my homeowners, auto, and an umbrella policy all with one company.

It's been a couple of years, and I'm still with the same agency and underwriter.  I have a relative who is now an agent, and she keeps re-quoting my policies.  The problem is the company she works for does not work well with investors and she can't get even close.

Happy Investing!