Rental Property Investor · Bloomington, IN · Member since 2018 · 70 posts · 78 votes
We purchased a run down property last month for cash with intention of making it livable and renting it. There is a HUGE demand for rentals in the area and we had over 100 inquires by prospective tenants in a matter of days. We rehabbed the interior and got a tenant in place (lease started June 1). There are issues with the exterior (rotted wood around the windows, needs roof/gutters soon, new windows, siding). As soon as we bought it, we insured it with our usual company. Now, one month in, we were notified insurance is being cancelled due to condition of exterior. We have plans to update these things over the next year but not right at the moment as we are currently navigating purchasing a primary residence at the moment. Do we have any options? Is it possible to get just liability insurance on a rough property? It was cheap enough I think we would be willing to skip replacement if that was an option. Our own insurance company said it’s too late now, even if we managed to make all of the repairs in the next month (not possible anyway due to timing), they probably wouldn’t re-insure. Anyone have any ideas to throw our way?
Investor · Peoria, AZ · Member since 2014 · 13 posts · 4 votes
5y
I've definitely had frustrations with insurance cancellations like this. They will usually give you time to remediate the problems, but even after you do they may not accept it. I had one where I had to fix siding and a window. After I sent pictures of the repairs, they still continued with cancelling because there was a tire leaning on the house in the new picture.
Like Greg said, you're probably better off going with a different company.
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
5y
Brook,
You have some options based on what you have described:
1. There are some Insurance companies that may accept a house as you indicated
2. There are Specialty policies (often referred to as Excess or Surplus Lines) that should be able to write coverage. Generally they are higher priced, have more exclusions, and more limited coverage. But it may be better than just Liability
3. State sponsored "FAIR" plans are the equivilant of the Assigned Risk plans for auto insurance. They are usually the Policy of last resort if you cant get coverage elsewhere
4. You can get Liability only policies or you may be able to add this location on your existing Homeowners policy