Insurance Coverage for a Commercial 5-plex in Alabama
Hello,
My policy premium recently doubled on a 5-plex I own in Birmingham. The agent has tried their best to find an alternative but we have hit a wall. One main issue is that I have only owned the property for 3 years and don't have any records of updates to electrical, HVAC, plumbing or roof.
I'm curious to see if anyone out there who provides coverage for a small commercial building can help?
Thanks!
Nathan
#2 Insurance Contributor
- Insurance Agent
- Nationwide
@Nathan Williams many times investors will not have any idea on the history of updates on a property.
Did you have an inspection done when you purchased? If so, share what the inspector has put down in the inspection report for age estimates on the mechanicals and roof. It's not exact, but better than stating the roof has never been updated on a 100 year old building. Underwriters should work with you if you have a 3rd party making the age estimates.
#1 Insurance Contributor
- Insurance Agent
- Norwalk, CT
Jason has a good point. If you did not get an inpection done, you may want to do one now. Alternatively, pay an Electrician, Plumber, HVAC contractor and Roofer to do reports on the age and condition.
Insurance companies are looking for things that have, in the past, lead to claims such as:
1. old, worn, or damaged roofs
2. Fuses, certain types of panels, Aluminum wiring, or Knob & Tube wires (also, they are looking for 100 amp service or above)
3. Older plumbing, PEX plumbing from certain years
4. Older Heating systems, portable heaters, and secondary (wood, coal, pellet) sources
Those are some of the things that you should pay attention to regarding the age of the systems
