The Real Estate Financial Planner Blueprint™
SS 010 Investing $100,000 in Savings at Approx 2%/yr

Insurance Report

The Insurance Report shows a variety of insurance related charts for your  Scenario. Use it as a quick way to inspect the insurance related aspects of your entire strategy.


The following is the percentage of the property value that you're setting aside for insurance on each property per year. As property values go up over time with the same property insurance rate, so does the cost of insurance.

This first chart just shows properties owned in month 1. This  Chart is particularly helpful for you to see the relative costs of insurance for any properties you own starting the  Scenario.

At first blush, lower seems better. But, you may have significantly better coverage (or different coverage) on ones that have slightly higher insurance premiums. On the ones that are low, you may be under-insured and in for an unpleasant surprise should something happen to that property. Talk to your insurance provider to make sure you have the coverage you desire and you have competitive rates.

Here is the insurance premium in dollars for the entire year for any  Properties you own in month 1.

Here are the insurance percentages over the entire  Scenario.

If you multiply your Property Insurance Rate times that Property Value you get Property Insurance amountin dollars for the year. This is shown below.

If adjust that number back for inflation to be in today's dollars, here's the chart for the cost of insurance adjusted for inflation.

The saw blade occurs because you lock in your insurance premium for a year at a time. After a year, it adjusts back up.

Want to know the total you're paying for insurance for all properties? The following chart graphically stacks and sums all your insurance payments for the year.

The inflation adjusted version of the same graphically stacked, summed insurance for your entire portfolio.

Operating Expenses

Since your insurance payments are part of the Operating Expenses for the  Properties, we've included a chart of Operating Expenses as well.

Your Operating Ratio are your Operating Expenses divided by your Gross Operating Income. It gives you an idea of what percentage your expenses are for the amount of money the  Property makes. Lower is better.

Private Mortgage Insurance

Your Private Mortgage Insurance (PMI) rate for all the  Properties you own in month 1. This is the percent of the initial Mortage Balance when you got the loan.

Your Private Mortgage Insurance (PMI) dollar amount for all the  Properties you own in month 1.

Your Private Mortgage Insurance (PMI) rate for all  Properties for the entire  Scenario.

Some Private Mortgage Insurance drops off after your  Property reaches a certain Loan-To-Value (like many conventional loans with PMI), but some have mortgage insurance that never drops off (like FHA loans).

Your Private Mortgage Insurance (PMI) dollar for all  Properties for the entire  Scenario.

Since PMI can drop off based on the Loan-To-Value, we've shown a  Charts of Property Value, Mortgage Balance and Loan-To-Value below.

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