Insurance questions - SE Wisconsin only (Milwaukee area)

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Insurance questions - SE Wisconsin only (Milwaukee area)

Nate Cade
Milwaukee, WI · Member since 2016 · 6 posts · 3 votes

Fellow Milwaukee landlords - I recently purchased a duplex on Milwaukee's southside (actually, two single family homes on same lot, very common in that area). Happy with the tenants I inherited and am doing some reno.

My issue is that I had my agent obtain insurance for both properties - I was quoted $2300 for one property (2 bed, 1 bath) and $2600 for the other (4 bed/1 bath). Rents right now are $715 and $750 (will raise when I can). Both houses were built circa 1895. 

My agent tells me these are standard prices, but it seems really high for insurance on a rental. I did purchase full replacement cost for insurance, rent protection and $500 premises liability and $500k for landlord protection (in an LLC, though).

Thoughts on cheaper insurance?? Time to dump my agent??

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Jason BottPro Member
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
4y

@Nate Cade those are definitely not "Standard prices".  Crime rating, personal credit and how broad the coverage is can push it to that limit, but I would think you can get that pricing down close to half without taking on much more additional risk.

Options can be on both commercial and personal lines policy, depending on what your lender needs.

I'll send you the carriers we use for pre 1900.

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  • Ty AshBusiness Member
    Real Estate Agent · Milwaukee, WI · Member since 2018 · 201 posts · 132 votes
    4y

    Hi @Nate Cade! My first step would definitely be to reach out to a few insurance companies ( I have a broker that has helped me find some good rates by doing this leg work for me). Keep in mind, there's not a lot of "customer loyalty" in terms of discounts that you're going to get from insurance companies. Make sure your coverage is what you need and shop it out! Feel free to reach out with any questions as I'm in your area!

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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    Yes you definitly want to shop that around - thats insanely high! 

    What's the insured value? I pay about $500 to $700 per property (SF) insured for around 200k, which is less than replacement value. I also have a commercial and a personal umbrella policy up to a million. I found that commercial property insurance is about the same than your household names, but premiums do vary quite a bit between companies.

    1Reply
  • Bo Bond
    Insurance Agent · Plano, TX · Member since 2021 · 127 posts · 94 votes
    4y

    Nate,

    You may visit with @Jason Bott here on BP.  He's been around for quite some time and is an independent with multiple carriers to approach on your behalf.  He's also located in WI.  Unfortunately, many factors go into rates/premiums like location, crime, age of building, type of wiring & plumbing, exposure to catastrophic events, replacement cost of the home, etc.  This does seem high up front, but so much goes into rating up a dwelling that it's really hard to tell with limited details.  

    2Reply
  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    4y

    @Nate Cade those are definitely not "Standard prices".  Crime rating, personal credit and how broad the coverage is can push it to that limit, but I would think you can get that pricing down close to half without taking on much more additional risk.

    Options can be on both commercial and personal lines policy, depending on what your lender needs.

    I'll send you the carriers we use for pre 1900.

    3Reply
  • Corina Eufinger
    Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 431 votes
    4y

    That is incredibly high! I pay $800 for 1863 quad, $300 for my 1910 duplex.  I'll send you some people to reach out to in the Milwaukee Area. 

    2Reply
  • Melanie Eden
    Member since 2020 · 18 posts · 11 votes
    4y

    Hi Nate,  you are paying way too much for the insurance. I have owned non-conforming duplex's in the past.  I am happy to refer you to the agent who does my insurance.  my memory says around 1k in annual premium.  since you are not insuring contents the cost is lower. feel free to email me and i can provide the agent contact info.

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  • Gino PassantePro Member
    Professional · Milwaukee, WI · Member since 2013 · 52 posts · 25 votes
    4y

    Nate.  

    Great buy with the 2 singles on 1 lot.  We manage quite a few of them on the Southside that annually perform much better than surrounding duplexes. Based on your numbers provided I can definitely say its time to explore other options.  I will DM you a local agent for some better avenues. 

    1Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    4y

    That's way too much. Contact Matt Pulda at Mainstream Insurance or Bob Dummer at P&C Insurance...or Jason Bott if you own more than 4 properties. All are local real estate investor favorites. 

    Captain Save-A-Home LLC
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  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    4y

    Nate,

    One thing to consider as you are shopping this.  Both houses are on the same property.  If you get separate polices and each have Liability coverage there could be overlap.  If someone is injured outside what policy responds?  

    If there is not a big difference in cost, it would probably be advisable to write both policies with the same company.  If you go with a commercial policy that may not be an issue.  Normally on a commercial Package or Business owners policy, you can schedule both building on the same policy

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