Combined $3M liability insurance for B2R/First Key refi

[Serge S.]

I've been working with B2R and First Key on a large cash out refi and one of their requirements is that I carry a combined liability of $2M for First Key and $3M for B2R. I had my insurance broker get some bids that are coming back at over $2500 a year. This is a real cash flow killer. I currently carry $1M per property and my average cost of insurance on an SFR in AZ is around $350. On 10 properties this additional cost is a real impediment. I'm wondering how others met this requirement and the cost incurred. Would be great to have a referral for a carrier that operates in AZ.

[Brian Burke]

Another thing to consider, @Serge S., is that the lender will require a specific rating for the carrier itself.  I ran into this...I had the proper amount of insurance but had to cancel my policy and go with a different carrier that had the required rating.  Email me and I'll give you a contact.