Updated over 11 years ago on . Most recent reply
Question about Insurance on MF
I have been getting quotes for insurance on my first MF (9 units) that I am under contract to purchase. Almost all, except one, of the insurance companies I have received quotes from are telling me they can only do a cash value policy instead of a replacement cost policy. It appears to be because of the age of the property (built in the 50's) and the unknown age of the roof and the plumbing/electric. Although my inspector feels that all of these were updated in the 90s.
Thankfully, the premium on the one replacement cost quote is close to the price I was using in my expense analysis and I feel pretty comfortable with the agent who gave me the quote. But it would be nice to have several options to choose from.
I will be getting a builder's risk policy for the first two months while the property undergoes some rehab. Is there something specific I should be doing to help the property qualify for a replacement cost policy? Is this normal on MF or commercial policies?