Noob here, Insurance is breaking my deal

[Scott Rosslow]

I found a deal that I am close to making an offer on. I used a guesstimate of 6k annual for insurance while my broker was shopping quotes. I thought I was conservative with that price and he came back with 12k. I am looking to partner and form an LLC to do the deal and my broker said the LLC was hard to shop for saying only 3 places would write on that. Is this common? Ultimately I wanted to refinance out of some borrowed money on the deal and hopefully BRRR it so I will need the insurance. Otherwise I can drop the windstorm coverage and keep the money tied up but it would only cost 3.6 k a year. I am in south FL if that matters. Are there brokers that can shop better for an LLC or what am I missing here?

[Ricardo Alonso]

@Scott Rosslow

Hey Scott,

Coincidentally, I am an insurance broker in South Florida. Florida is a tricky insurance state for the simple fact that admitted companies place so many restrictions that more often than not surplus lines are needed. It also depends on the age of the property, a newly built home will be way less to insure than a 1950's property (if they will even insure it.) The fact that an LLC owns the property shouldn't have much to do with anything, the insurance company is insuring the property not the owner. Would not recommend dropping windstorm in SF, look at what we just had happen here. I will be more than glad to help you out if you would like.

Thanks,

Ricardo A.