It’s an old building, which I understand but if it’s been standing 140 years and is in good shape wouldn’t that be a testament? The previous owner used State Farm, so I called them because I figured they knew the building. Well they said I’m ineligible, as a person?! I have a 780 credit score and have never had a lien or negative record of any kind. Only thing I can think of is I had a motorcycle stolen that had State Farm and I obviously filed a claim. Are they checking for things like that?!
I’ve tried 6 insurance companies as of right now with no luck. Any advice is appreciated.
Commercial property insurance underwriters are refusing to insure a building I just bought
byu/I_EAT_THE_RICH inInsurance
Posted by I_EAT_THE_RICH
8 Comments
Google independent insurance agent plus your zip code. Choose one of those people. Have them try to get you quotes. There’s a lot more than 6 carriers out there, appetites are changing all over, and you also have an old building so don’t expect something cheap.
You need to have an agent/broker shop for you. What state is the building located in? What is the occupancy type of the building? At that age, it’s going to be very difficult to find a willing standard carrier (without providing substantial documentation), so you will likely need to get coverage in the E&S market.
Anything can be insured. It’s just whether it makes sense to pay the premiums. How old are the systems and the electrical and plumbing in this building?
The building may be 140 years old and in good shape, but it is also has 140 years old bones.
Credit scores don’t mean much in insurance since most states don’t allow it to be used.
I insured a lot of 100+ year old buildings; I think 80% of my business was 75+ year old buildings.
Call an independent broker, unless it got a 2023 or later facelift & tuck, prepare to pay.
a 140-year-old building is an insurer’s nightmare — lath and plaster, knob and tube, balloon-framed walls, lead service lines and paint, potential asbestos, and general lack of modern code compliance
add to that the fact that it sounds like a commercial building (as we have names for residential buildings such as “house” and “duplex”), and it’s a very unappetizing risk
add to that the fact that you’re in california, a state where many insurers have ceased to do business and where those who still do are actively trying to shed policies, and it’s an almost impossible risk
the other commenters have it right, you’ll need to work with an indy and expect to pay a lot of money on the surplus lines market
(you really should have shopped this as part of your due diligence before purchasing lol)
State farm is scaling back commercial and rental properties. I bet it’s an apartment building? This year no writing new policies.
I’m in the standard admitted market and I wouldn’t touch a 140 year old building. It’s not personal, I’m just not interested in 100+ year old buildings, nor is my company. A lot of insurers are the same way.
Forget about shopping direct, contact an independent insurance agency that handles commercial business and they’ll be able to find a place for it. It just might not be cheap and it might not be in the admitted market depending on a lot of factors.
Dont take it personal. It’s a real thing. I have the same issue. My insurance agency is in a building that was built in 1892. I can’t even insure it through any companies that I represent.