Trouble finding reasonable insurance in Chicago, IL

[Adam Sporinsky]

I don't currently own any property, but I'm pretty close to making offers on a few multi units in the city, 2-4 unit range type buildings.  I have called a few major insurance agencies (Farmers, MetLife) and so far the quotes I am getting sound fairly outrageous, at least compared to what I am seeing across the site and my expectations.

What kind of rates are Chicago investors seeing for multi family apartment buildings, and what agents/companies are you using. Is 5500-6500 per year REALLY what landlord insurance costs for properties in the area? They keep saying they can't insure the property for less than $1 Million or so in coverage, but the ARV on these properties is closer to 400-450k. Seems pretty unnecessary at that level.

Also, and this is probably a dumb question, lets say I am looking at a 3 flat, and each individual floor is around 1200 sq ft.  When they ask about the sq. ft. of the building, do I say 1200, or 3600?  I imagine the latter?