I am dealing with a situation where:
1) Insurance companies have quadrupled insurance fees in the last 2 years! For a 4-plex condominium complex, I was paying $144/year per unit in 2019, now I am getting quotes that are $550/year per unit for identical units in same complex.
2) Insurance providers such as State Farm have stopped taking new customers for landlord insurance, and companies such as Travellers have set limits of no more than 10 units per landlord.
Has anyone else faced a similar situation? And if yes, is there a solution here?
@Manish Mishra Welcome! I would call an independent agent and get a quote. My rates haven't changed on my units. Good luck and keep us posted.
Thank you Dylan. Will keep trying. Manish
Manish, as an independent agent, I'm very familiar with limits set by different companies like you mentioned with Travelers. With the wildfires in CA, many companies like SF seem to be restricting their exposure which they're doing in TX as well by being "premium priced" to slow the flow of new business. I don't get anything out of it, but I know a lot of great CA agents that can shop around for you and can point you in their direction if you want someone that's good.
You were getting insurance for $144 per unit, per year? That's only $576 a year on a four-plex? I'm in a small town in Wyoming with one of the lowest crime rates and lowest number of natural disasters in the country and we pay double that. It sounds like your insurer is just catching up.
@Nathan G. thanks for the response. In your opinion how much would be an average standard rate for each unit (treated as condo) in a four-plex assuming HoA pays for exterior, roof, foundation etc?
@David Call thanks for your response, please can you send me some of these contacts? I do want to explore my options.
Todd Payne is an agent with Prosper Insurance in SoCal and can do business statewide - 858-581-2131.
Shane Eastman is in N. Cali and can also do business statewide - 704-402-8887
There are a ton of variables (size, age, quality) but the national average is around $500 per condo.