Insurance premium seems really high

[Carla Gordon]

Happy New Years everyone. I'm closing on my first BRRRR soon and have been shopping for insurance. I've gotten quotes on insurance but they seem much higher than I expected. Trying to figure out why my quotes are coming in at $2800 for a yearly premium. Here's some details:

Property in Houston TX 77009. Built in 1945. Square footage 1200. Will be vacant and under rehab for 60 days

Dwelling coverage $175k

Liability 1MM

Deductible $10k (premium was even higher before with 2.5k deductible)

Again my first deal, but based on what I’ve seen from others, seems super high.

[Mike McCarthy]

Some (most?) landlord policies allow 60 days of vacancy. They aren’t intended as builders risk policies, but can serve the same concept if you stay within their timelines.

Check with a knowledgeable broker/agent though. This has worked for me, but I’m far from an insurance expert.