property insurance

[Pindy4]

I'm looking for a ballpark figure for what rental property insurance costs (ie. $500-900)

Let's say an older 3 bedroom home in an older area of town, vs a newer 3 bedroom house in a newer area of town. (Let's say Edmonton. Thanks

 

[DaveL]

I can only speak for newer and you are looking around 900-1000

 

[Mike Milovick]

Your insurance company will have a questionaire that will need to be filled out in order to properly assess. In Ontario, many factors can contribute to a rated premium including amount of liability coverage, presence of older, knob and tube wiring or alluminum wiring, size of electrical service, age of roof, square footage of home, whether the home is heated by oil, presence of older style plumbing - like galvanized pipes and cast iron drains - and most importatly, the cost to re-build.



As such, its really tough to ball park an estimate - especially on an older home.

 

[Nir]

[quote user=Pindy4] I'm looking for a ballpark figure for what rental property insurance costs (ie. $500-900)

Let's say an older 3 bedroom home in an older area of town, vs a newer 3 bedroom house in a newer area of town. (Let's say Edmonton. Thanks




Good question.



In addition to the estimate you received above, the answer is usually not a big difference! The reason is the size has the biggest influence on your premium, much more than the age. That's because an important factor to the insurance company affecting your premium, is the cost to rebuild a home the same size and this has nothing to do with the age after it has been destroyed by fire for example.



Regards,

Nir

 

[Thomas Beyer]

Maybe $500 to $800 for a $300,000 home .. more if far away from fire hydrand, small town or in an earthquake zone !

 

[kfort]

When running numbers I like to over estimate costs to build in a bit of a cushion. I use a minimum of $1,000 and sometimes $1,200 for this cost. This helps in case of an insurance increase in the future due to a claim.