Brick + Beam Detroit

Insurance costs/costs to carry an old house

Asked by Andrea Magiera-Guy at 11:09am on Feb 12 2016

Hi there,

We're moving from the east coast and are looking at a variety of old houses that we would love to live in and rehab. As we've got closer to making an offer, I've called for insurance quotes and what I'm hearing is steep since its based on replacement cost and not market value. I just wanted to check in and see what people do/if there's anything to do to mediate these costs... If you have a particular agent that is good with affordable quotes... Any advice would be great.

Thanks!
Andrea

Discussion

at 10:07am on Feb 13 2016

Hi Andrea, insurance is going to be expensive in Detroit if you want acceptable coverage. I am not sure of the details, but you can get $25k fire coverage through the state. Structures burn down all the time here, this is the real reason for insurance rates to be so high. My recommendation is to speak with your insurance company and talk them down down down. I have spent hours talking on the phone with my insurance company and have a very good rate with $500k Coverage. The lowest they were willing to go, but that is much better than the $960k they originally sought. Removing all original knob and tube will also bring your rate down.

Detroit has the highest insurance premiums in the country. I pay $90 a month for liability on a 17 year old F 150 and I have 1 speeding ticket. So expect to pay high insurance, it is one of the draw backs about the city.

at 10:25am on Feb 13 2016

I am going to the next meeting which is about insurance, so I'll be sure to report back what I find out!

at 10:44am on Feb 13 2016

Hi Andrea,

Welcome to Detroit (almost!). Hope you'll think of Brick + Beam as a continual resource for you as you buy, rehab, and maintain your house! I don't know if you'll be in Detroit on February 23rd, but Brick + Beam is hosting an event on this very subject (see events page)! The event's speaker on insurance, Ashaki Malone, works for a firm who was recommended by the Detroit Land Bank Authority. If you can't make the talk, she should be giving us a digitized handout on tips and suggestions for navigating home insurance, and that will go up on our resources page after the event.

Another Brick + Beamer recommended the following group, but I can't personally vouch for them:

Jon D. Spalding, President & CEO of Spalding Insurance Agency, Inc.
[email protected]
517-625-4141
517-337-3200

Thanks for jumping in and lending your experience, Cole! See you at the event!

at 8:06pm on Feb 14 2016

Thanks everyone!

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