@Aaron Lawson good question. We first get the actual, most recent insurance bill from the current owner (if they have it/will provide it). Since we don't want to put too much trust into those figures, we have our broker, who's been a great asset in our business, provide a quote during the due diligence phase. He hunts for the best deal with the best coverage for us since we have quite a bit of business with him. He's even come back to me months after we've closed on a property with better rates through a different insurer, and in one case the costs were substantially less. In some instances where a property is under-performing, we get a quote based on "as is" condition and then one based on making certain capital improvements within the first year to allow for pro-forma projections. I still like to use the most conservative numbers, though.
