6-unit Insurance In Mass
argh... i am closing on a 6-unit in worcester, ma and the bank wants flood insurance(!?)... fine.
so i shop for generic (commercial) insurance and the agent tells me that there are not that many commercial insurers that will offer products for "habitational" properties.
so she came up with $4700 for an year for insurance and $1700 for flood insurance with 5k deductables. am i been taken for a ride? i sure feel so. to close the deal i will go with her offer (no time for else- closing is in few days), but i think i should shop more extensively at a later date. correct?
the building (built in 1900) does not have any outstanding code issues, has hardwired smoke detectors, up-to-date wiring, etc..it is in good overall shape.
whats your experience with 5+ family insurance rates?
thanx in advance
ps: btw, flood insurance in worcester? thats a first i am hearing about...
[ Edited by fireice on Date 05/16/2005 ]
I have been and underwriter of small multifamily properties for various lenders and an owner for years. Even accounting for geographical differences, the price for basic insurance seems outrageous. I would certainly shop around for insurance the next time around and as for this time, even if you are forced to live with this provider, you may want to investigate coverage with a much higher deductible if allowed by your lender.
We are currently in a hard, but softening, market for habitational insurance. I would suggest you find an Agent that is familiar with REI, and maybe even invess themselves. A lot of it boils down to the carriers that the Agent represents and how much of an appetite they have in your area and the experience they have with the Agent...
Best regards,
Tim
Post the details of your deal here and I am sure that you will get some feedback.
[addsig]
there are also calculators that can help w/ the analysis on multi-family dwellings. They produce nice graphs and all. I have used one called On Target, which I thought was o.k.
Keep looking...
If there is no deals in your area, then start looking outside you area.
see if you can think outside the box, and create an opportunity.
Well apart from the possiblity that the whole thread should be deleted as advertising. . . . .
I never understand people who have trouble finding deals. Deals are everywhere. Complete newbies can stumble across them in a matter of days. There is a real estate brokerage office on every corner. You cannot drive down the street without seeing under utilized, under developed properties if you keep your eyes open. Lack of Deals ususally means
1) Lack of willingness to look for them
2) Lack of knowledge to see them when you find them
3) Lack of imagination to create them when all else fails.
What kind of deal are you looking for that is so hard to find?
Quote:
1) Lack of willingness to look for them
2) Lack of knowledge to see them when you find them
Commercialking,
I am a REI newbie and I also find it is difficult to find the properties in the HOT market where I live. It’s defiantly not a buyers market. Buyers do pay way above the asking price. Just two days ago I met with my RE agent with 20 year experience to discuss my plans in REI. She also said that the multifamily properties of interest enter the market every 3 month or so AND when they do you have to act FAST… Anyway, I am willing to look for properties but I don’t have the knowledge how to find them. I would really appreciate if you could share some tips and ideas for property search.
Basically I am looking for multifamily: 2-8 units under one roof.
Thanks in advance for your time