Quote from @Rob Bianco:
My insurance broker and I are not seeing eye-to-eye lately. I own about 15 duplexes and I've always felt like I paid a little too much on insurance because I always paid more than anyone else I knew. I never really thought to look into things until my insurance broker said my rates would go up 20% - 30% moving into 2024-2025.
Right now I'm paying about $100/month per door. Most people I know are paying about $75/month.
So I went and got quotes from NREIG and Shelter Insurance. My insurance guy said their quotes were DP1 and he's writing DP3 and wouldn't touch DP1 policies. My Broker's policies include things neither NREIG or Shelter offered including coverage for: Sewer Line, Water Backup, Water Damage, and Personal Property.
As a business owner paying more is costing me about $7200/year in extra expense. I don't want to be over insured or under insured, but it's hard to tell what's what because everyone in insurance is such a good salesman. What should I be doing?
Rob, everything your agent is saying is correct, it just comes down to what you want covered. Don't feel guilty because you don't want to buy the extra coverage for $7,200 if you are comfortable coving those claims out of pocket.
How many claims have you filed in the last 5 years that would fall under the DP?
Also, keep in mind, in this insurance market, if you file 1-2 claims, they will cancel you and you will need to go to market with losses on your record. The alternative options will be higher than what you are currently paying.
TIP - Raising your deductible to $5k will usually eliminate the need for the Water Sewer Back Up and Business Personal Property as those claims are usually around those amounts.
Replacement of Sewer Line in not available on commercial policies. I have seen these cost $12k-$20k.
Water Damage is the big one and can cause $100k in damages to a SFR if the building is left vacant and the heat is off during a cold spell. Pipes burst in the walls and flooring can be ruined.
