Posted by Bill K. (AZ) on March 05, 2000 at 14:57:47:
Jim,
Insurance costs on single family homes is a very minor expense especially if you’re not interested in holding the property long-term. I’ve paid as little as $20/month and as much as $80/month. However, I flip all of my properties. So, my insurance cost is negligible no matter which number I use.
However, as a general rule, if the property is in fair condition your annual insurance costs shouldn’t run more than $500/year. In the case where I spent $80/month, the property was in serious disrepair, and my normal insurance company wouldn’t touch it. However, once I repaired the property, they picked it up at $35/month. So, I only needed the higher priced insurance for a few months.
Calculating Insurance Cost (Approx) - Posted by Jim LaVerdi
Posted by Jim LaVerdi on March 05, 2000 at 13:06:53:
Hello Investors;
I am wondering; does anyone have a system or formula for calculating approximate insurance cost for property? I am trying to determine approximate owner expense so I can make a ballpark determination of my offers.
I basicly use Octitle for most of my needs. I can look up the owners 1st loan amount and amortize that number using dates and the approx interest rate for that time period. I also use my county tax assessors information for taxes on the property and divide by 12 to give me the monthly tax expense. My only area of uncertainty is insurance. Is there a basic formula for calculating it?.
Re: Calculating Insurance Cost (Approx) - Posted by Steve (ga)
Posted by Steve (ga) on March 05, 2000 at 14:59:37:
If you have the time to use Octitle, then you probably have time to call an insurance company. I frequenty call my insurance company and can get a quote over the phone based on the numbers I provide them…