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Get an Insurance quote before finalizing negotiations.
It's a large line item that could kill a deal if not estimated correctly.
Even a $5,000 dollar difference can have a significant impact during the life of the investment.
1/6 A Thread
It's a large line item that could kill a deal if not estimated correctly.
Even a $5,000 dollar difference can have a significant impact during the life of the investment.
1/6 A Thread
2/6 Loss Runs- Depending on the damage incurred this could greatly affect the quote. Also, it's nice to know what serious damage has happened in the past.
3/6 Quotes- If the initial quote comes in high you can work with your broker to tweak things or get more quotes from other carriers. Getting this done early will give you the time to get the best quote with the optimal coverage.
4/6 Lending Requirments- All lending institutions have different requirements when it comes to insurance. So understanding this upfront and making sure you have an adequate quote is crucial.
5/6 Flood- You may find out that the structure is in a flood zone. So that will require additional insurance/cost. Also depending on the severity of the flood zone that could also be a deal killer. Even if there is a very small body of water nearby check the flood zone map.
6/6 Blanket Policy- Some property managers will have insurance blanket policies that you can participate in. As you build your own portfolio you can have your own blanket policy as well. Usually, there are significant cost savings by participating in a blanket policy.
