Originally Posted by bud222
Aspencreek,..can you find out WHY your rates are high? I'm paying 17,000 a year for a brick 4 plex in good shape a 1/10 of a mile from a firehouse,.with 1000 deductible.do they print a rationale on the properties they insure?
Rates are dependent upon a multitude of factors, and every insurance company grades a property accordingly. Factors can be, location, use, proximity to firehouses/police stations, credit score, type of construction, conditions, liability issues, (and I'm going to tread on some unsteady ground here) section 8 housing, past claims history, past property history etc. etc.
The only person who can tell you why your rates are as much as they are is your agent. They can find out your score and classification and what determining factors are at play. But to really find out if you are overpaying, you are going to have to do some shopping. Yes, do the thing you want to do the least. But at $17,000 a year, I'd be shopping every other year. How? Simple....call a couple INDEPENDENT agents and then go ahead and call whoever you want, BUT, make sure they are well versed in commercial rental properties. Tell them the truth to any questions they have about the property and any other properties you might have or want to include. Except what you are paying now and who you have as a carrier now. It's none of their business, if they want your business. Let them visit the property, determine what coverages is best and fits with what you want, and see what they come back with. My rule is at least 3 choices to pick from, but the more the better. It's particularly fun, when the bidder comes back with a quote cheaper from your existing company, yes this happens. If this takes 5 hours to get done and it saves you $2-$5,000 a year, yes it's worth the time and effort. Let the bidders know you are shopping, and will continue to shop in the years to come.
It is amazing how many people I talk to that have had the same insurance carrier for years, even decades. They wear it like a badge of honor, it's NOT. You are not married to your agent no matter who he/she is. If you have not shopped your Homeowners, Commercial or vehicle insurance within the last few years you are paying too much, and I am 80% certain of that. I shop mine every 5 years, I just cut my HO policy by a bit under $300/yr and vehicle by just over $550/yr, I talked to 1 agent who sells for 4 of the Ins. Companies I work for. Total time spent was about and hour. $850+ /hr, that's a good hour!