Real Estate Agent · Inglewood, CA · Member since 2015 · 295 posts · 150 votes
There was a tenant caused fire in my mother's 10 unit building earlier this year. The tenant was evicted and we have documentation showing that it was caused by them and showing they were subsequently evicted. There were no injuries and there was moderate fire damage to one unit and moderate water damage to 3 units. Travelers Insurance told my mother that they are dropping her policy in 2016 due to her being a liability. Upon calling to get quotes from other insurance companies we were told that they do not write new policies for properties with recent claims. It is nonsensical to me that an insurance company can drop you for using their damn services. She has owned the building since 2010 without any problems or claims. Please help and advise if you know any companies that will insure the property.
Your best bet is to get an insurance broker who can shop around amongst many companies to find a policy for you. With a recent fire claim you are going to have a hard time locating a policy on your own. Also keep in mind that the policy you do finally get will have a higher premium due to the recent claim on the property.
Also keep in mind for the future, that you need to really weigh the benefits of filing an insurance claim. How much were the repairs to this unit? When weighing the costs of these repairs against future increase in premiums, with the additional headache of having a hard time insuring the property...it may have just been cheaper to fix the unit yourselves if the damage was in fact minor.
Also keep in mind that if there are too many claims made against a property, that the property will become uninsurable. If that happens, you wont be able to sell it, and your lender may call the note due.