All Forum Posts by: Hobart King

Birmingham is in North Central, Alabama. No Hurricanes here LOL. Tornadoes occasionally but rarely in Birmingham (More common in the West of the state). 

Yes - very good shape. One is basically a brand new house with new everything. The other one is structurally sound and has a long term tenant. Going to renovate once he decides to move on. I think the state of the property shouldn't be influencing the insurance up.  

I've never filed a claim in my life, owned in a 50/50 Partnership, and I have a very high credit score as does my partner. I looked at the policy and it seemed to just cover the basics - fire, liability, and sewer backup.  

@Marc Rice

Good idea I’ll reach out and see what the savings are.

I see you are from Columbus! Nice city lived there 6 years prior to moving back to Bham, AL. Boy do I wish when I moved there in 2013 I had bought a house in Italian Village (rented an apt there).

@John Patton

It’s not that bad of an area. It’s adjacent to Crestwood North and south of the tracks of Woodlawn. There’s definitely poverty and vacant houses there but I think crime is low (closer to CW North than Woodlawn). I think I may be getting screwed somehow by it being close in proximity to Woodlawn and East Lake. I’ve gotten high quotes from virtually every insurer I’ve looked at. The one I have is high but actually LOWER significantly than other quotes I’ve got. Seriously it’s just insane.

Lemonade is not in AL yet :(

It absolutely is insane. In Alabama, the major danger is tornados but I don't even think that's covered in my policy. My personal property insurance is only ~$100 per month for a house that was around $400k and I'm paying more than double for houses that cost ~$100k to replace. Makes no sense

Can someone tell me what a normal amount is to pay for Insurance on low end rental properties? I own two rental properties in a 50/50 partnership in Birmingham, AL. 

Rental 1: Market Value ~50k. Insurance Payments are $1,829/year and rent is $590/mo. 

Rental 2: Market Value - $120k. Insurance Payments are $2,244/year and rent is $1,100/mo. 

Carrying Fire insurance 70k on the first and 100k on the second. Personal Liability $1MM on each. 

Does this seem in line with market rates? I feel like this is an absolutely ridiculous amount of money to pay to fire, water backup, and liability insurance. What are other people paying? Anyone you guys would recommend?

No loans on either of these properties. Would it be better to just not have insurance and be out the money in the minuscule chance that these houses burn down? I can always get personal umbrella coverage to cover the liability I think. 

Thanks,
Hobie

@Clayton Smith Progress Bank in Bham usually lends at 80% LTV. Maybe you should give them a call.

@Joseph Firmin Thanks - I'll do that!