Selling at Discount Due to Insurance Cancellation (Or Advice Needed?)

Selling at Discount Due to Insurance Cancellation (Or Advice Needed?)

Rental Property Investor · Member since 2019 · 42 posts · 13 votes

Hi all, 

My insurance company sent me an email last night saying they are cancelling my policy on 5/7 mainly due to shingle/roof damage, debris on premise, and miscellaneous maintenance issues.

My insurer has mentioned that insurance has become a stricter process. I am not aware of any changes to the property. Everything should still be the same as before.

I'm not looking for exclusive representation yet. I do want to sell a house at discount. The location is 66104.

Tenant is in place until September. They have paid rent at $1100 every month.

I don't want to deal with fixing this.

Does anyone have advice for me? Or know anyone that can purchase in cash quickly? DM if the latter question applies to you for more details.

The property on Zillow is priced off-market around ~$128k with Rent Zestimate at $1125. I'd be willing to let it go at ~$115k.

Thanks in advance,

Jess

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    Get a new insurance policy. It's not all that much trouble. We had a large claim many years ago and it was too late for the insurance company to cancel us. So they sent an inspector around and came up with a huge list of things to repair or be cancelled. When my broker shopped the policy we found a slightly lower rate for same coverage. This company sent an inspector out but they weren't gunning for us. I don't recall them asking us to change anything. 

  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 708 posts · 267 votes
    2y
    Quote from @Jess Archives:

    Hi all, 

    My insurance company sent me an email last night saying they are cancelling my policy on 5/7 mainly due to shingle/roof damage, debris on premise, and miscellaneous maintenance issues.

    My insurer has mentioned that insurance has become a stricter process. I am not aware of any changes to the property. Everything should still be the same as before.

    I'm not looking for exclusive representation yet. I do want to sell a house at discount. The location is 66104.

    Tenant is in place until September. They have paid rent at $1100 every month.

    I don't want to deal with fixing this.

    Does anyone have advice for me? Or know anyone that can purchase in cash quickly? DM if the latter question applies to you for more details.

    The property on Zillow is priced off-market around ~$128k with Rent Zestimate at $1125. I'd be willing to let it go at ~$115k.

    Thanks in advance,

    Jess

    You can likely get another insurance policy - but you might have to settle for substandard coverage.  Hard to say without knowing more and the actual condition of the property.
    Royal Oath Insurance Group4.9211 Reviews
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