Almost $350 per month for insurance??!

[Joel Oh]

Hello guys,

I just purchased a four plex in St.Paul, MN.

I am planning to run it as mixture of short term and long term rentals since there are existing 2 long-term tenants.

I got the quote from my usual insurance company and what seriously?

They gave me quote of $4000 for smaller than 3000 sq ft house!

I understand this is over 100 years property but seriously $4000?

I got a second quote from a different company, and they gave me close to $4000 as well.

This is blowing my mind. I was expecting maybe $2500~3000 but w.o.w.

Insurance is seriously making me to consider flip instead of renting. 

Is there any insurance company that covers short-term and cheaper in MN? 

[Bill B.]

If $1,000 extra per year is making a deal questionable you should definitely bail on it. That’s one appliance and with 4 units you will probably lose an appliance every year or two. It’s $20/unit price month. I assume you asked for a quote with $2500 vs $5,000 deductibles? (Since you’re obviously not going to make any claim under $10,000 anyway.)mi also assume you asked the previous owner and the owner of nearby buildings who they are using and what they are paying.