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Adam Craig
  • Investor
  • Cleveland, OH
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Looking for commercial property insurance - 6 properties total

Adam Craig
  • Investor
  • Cleveland, OH
Posted Dec 1 2022, 09:24

Looking for commercial property insurance - 6 properties total. I am currently insurance with Nationwide but have been looking to shop it for quite some time.

These are non-residential properties.   I would like to get a quote on one property for sure that I need now and then maybe get a quote on my other 5.

Any referrals appreciated. 

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Kevin Hoag
Pro Member
  • Insurance Agent
  • Cleveland, OH
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Kevin Hoag
Pro Member
  • Insurance Agent
  • Cleveland, OH
Replied Dec 1 2022, 10:11

Can you tell us what type of commercial properties you have? Are the properties all apartment buildings, office space, retail space or mixed use. Where are they located? Cleveland's rates can be great in certain zip codes and unfavorable in certain zip codes. Location plays a huge role in the rating factors with Cleveland. The best part about Ohio is that there are many options to go with because we have no natural disasters to keep carriers out of our state. Nationwide is a great carrier but depending on what you are looking to get insurance on they might not be the best fit.

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Adam Craig
  • Investor
  • Cleveland, OH
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Adam Craig
  • Investor
  • Cleveland, OH
Replied Dec 1 2022, 10:22
Quote from @Kevin Hoag:

Can you tell us what type of commercial properties you have? Are the properties all apartment buildings, office space, retail space or mixed use. Where are they located? Cleveland's rates can be great in certain zip codes and unfavorable in certain zip codes. Location plays a huge role in the rating factors with Cleveland. The best part about Ohio is that there are many options to go with because we have no natural disasters to keep carriers out of our state. Nationwide is a great carrier but depending on what you are looking to get insurance on they might not be the best fit.

 Nothing residential. They are all office/retail.   All suburbs of Cleveland, usually B areas and nothing in Cleveland itself.  44092, 44130, 44094, 44077.

What actually made me shop it aside from maybe finding better rates is that my agent said Nationwides appetite for the buildings I buy - which are usually slightly distressed with some vacancy. We fix the buildings up and get them full of tenants but my latest purchase he said they likely wouldn't be able to do because of the roof is older then 20 years and its 40% vacant.  We plan on replacing the roof and I carry a $5000 deductible so I wouldn't be making a roof claim anyway but thats what he said.

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Kevin Hoag
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  • Insurance Agent
  • Cleveland, OH
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Kevin Hoag
Pro Member
  • Insurance Agent
  • Cleveland, OH
Replied Dec 1 2022, 10:37

Sounds like a nice portfolio I recently sold the majority of my residential portfolio and bought and office building in 44129. I am loving the commercial space and the reduced head aches. Its always great to be able to BRRR an office building and or simply force increased appreciation. Your more mainstream carriers will all decline the property due to the current vacancy rate. There are carriers on the wholesale side of insurance that will gladly insure a property with higher vacancy. The pricing is going to be higher due to the increased risk of having a split between vacant and occupied units. I would only recommend using those carriers as a temporary solution. Once the work is complete you should then get it quoted with a carrier that will be more competitive on the pricing since all the risk will be mitigated at that point.

  • Insurance Agent Florida (#W926465), California (#4254212), Arizona (#17305721), Alabama (#3000533059), Arkansas (#17305721), Indiana (#3433967), Kansas (#17305721), Louisiana (#832520), Michigan (#17305721), Missouri (#8478592), Ohio (#1090522), Pennsylvania (#899635), Tennessee (#2437182), Virginia (#1127377), and West Virginia (#17305721)

  • 216-505-4677
  • https://agents.farmers.com/oh/parma/kevin-hoag
  • [email protected]

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Adam Craig
  • Investor
  • Cleveland, OH
128
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603
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Adam Craig
  • Investor
  • Cleveland, OH
Replied Dec 2 2022, 11:16
Quote from @Kevin Hoag:

Sounds like a nice portfolio I recently sold the majority of my residential portfolio and bought and office building in 44129. I am loving the commercial space and the reduced head aches. Its always great to be able to BRRR an office building and or simply force increased appreciation. Your more mainstream carriers will all decline the property due to the current vacancy rate. There are carriers on the wholesale side of insurance that will gladly insure a property with higher vacancy. The pricing is going to be higher due to the increased risk of having a split between vacant and occupied units. I would only recommend using those carriers as a temporary solution. Once the work is complete you should then get it quoted with a carrier that will be more competitive on the pricing since all the risk will be mitigated at that point.


 Hi Kevin - thanks for the straight up answer! Thats what I will plan on doing then, we should have the building in good standing within 6 months.

And good move on the office purchase! I been buying single family BRRRR rentals since 2013 but got into non-residential commercial side of things in 2019 and never looked back. I still hold a nice portfolio of single family but I am always looking at which one to sell next as I fell in love with non-residential commercial for all the reasons you mentioned.