Author Topic: Insurance on Rental - How Much?  (Read 1399 times)

nedwin

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Insurance on Rental - How Much?
« on: July 11, 2013, 10:22:28 AM »
My wife and I own a rental property in Anchorage, AK.  My current insurance company recently sent out its renewal policy for the property, the premium is increasing from $1059/year to $1237/year.  Their justification is that they have paid out $1.02 in claims for ever $1.00 of premiums in Alaska, so the raised premiums by 17% to compensate.  I discovered that the deductible was only $500, so I raised it to $1,000 for the new policy which lowered the new premium to $1138/year.  I am considering raising the deductible to $2000.  This premium seems high.  Am I justified in this suspicion or is $1138/year a fair price?

The house is a ~1200 sf "zero lot line" (it's connected to another home), two story, two bedroom home, 1.5 bath home with a wood burning fireplace.  It has hot-water heat with a heated 2 car garage.  Standard finishes throughout, nothing "custom."  The insurance company estimates replacement cost at $203k and the policy insures personal liability at $300k.  It does not include earthquake or flood insurance.  The replacement cost may seem high, but I don't know that it is.  Housing in Alaska is expensive compared to many other places.

Thoughts?

Daleth

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Re: Insurance on Rental - How Much?
« Reply #1 on: July 11, 2013, 08:23:26 PM »
That seems expensive to me but I'm thousands of miles away. The only way to know whether it actually is expensive is to call other insurance companies that cover homes in your area and get bids on an identical policy from them.

MoneyLifeandMore

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Re: Insurance on Rental - How Much?
« Reply #2 on: July 12, 2013, 05:47:26 PM »
I suggest you get a quote from another company if you think your insurance is too high. Insurance is really high down here in Florida, but that is every company I go to. If every company is expensive in alaska, then it is what it is unfortunately..