All Forum Posts by: Deatrick Carter

I have 7 duplexes and thank God I have never had to file a claim. That said, I know other REI investors who went cheap on insurance and it cost them dearly. The area where I live has a major hail storm last year. While my properties were not damaged my insurance went up nearly 18%.

Those who did not have replacement insurance were on the hook for thousands of dollars to replace the roof. Over the past two years i was able to replace the roofing on my duplexes. At the time it was around $7000 for a 2800 sqft duplex. If I had to replace a roof today, it would be more than $8000. I have a $1000 deductible for my properties. Which means if I needed to replace a roof today it would only cost me $1000 instead of $8000.  

If the roof is older, the insurance company will depreciate the value of the roof. If the roof is valued at$2000 and your deductible is $1000, then your new roof will cost you $7000. 

Insurance is expensive until you need it. When you need it it is cheap.

As stated above, go through an independent agent, require renters to have rental insurance and keep enough reserves to cover your deductibles.