Insuring a property - Posted by bruce k

Real Estate Investing
1

Posted by brandoncbsre on August 15, 2008 at 20:14:30:

If you are saying that the premium will run $1.25 per sqft…FIND ANOTHER AGENT. That is CRAZY expensive!

2

Insuring a property - Posted by bruce k

Posted by bruce k on August 15, 2008 at 16:03:54:

Dear friends,

I am just getting started in this Biz, and just got off the phone with my insurance agent who tells me he typically charges $125 per sq. ft annual premium for property insurance, that includes: i) loss of rent for one year, ii) Structural, and iii) $1M liability (seems more than I need for the last one, don’t you think?).

Questions:

  1. Is $125 per sq. ft. about typical (Pittsburgh area).
  2. He wants to walk-through each property (how is this practical, when I don’t get the keys to it until at Closing.
  3. Should I get Replacement cost or Actual Cash Value?

regards, Bruce

3

Re: Insuring a property - Posted by David Krulac

Posted by David Krulac on August 16, 2008 at 05:27:02:

Bruce,

If the property is in good condition and decent location, Erie will probably have your best rates. I can refer you to a Pgh area agent for Erie if you wish.

If Erie won’t handle the property other companies will including Donegal, and State auto., both licensed in Pa.

4

Re: Insuring a property - Posted by bruce k.

Posted by bruce k. on August 15, 2008 at 16:05:55:

Sorry: meant to say $1.25 per sq. ft. per year ins cost.

5

Re: Insuring a property - Posted by bruce k

Posted by bruce k on August 16, 2008 at 06:55:29:

Thanks Dave! I will follow-up per your suggestion. Bruce