Insurance FYI for older 5+ unit homes

[Chris Webb]

Hi BP, I wanted to share a situation I was able to overcome this week to prepare you if you are buying an older property (converted 4500 sqft home older than 1900). I had a local insurance company say they could insure it and all I would need to do is get the premium paid before the closing. I called the week of the closing (this week!) and they took my payment information and everything was fine. I headed to the bank to get my check for the closing the next day and as soon as I got back into the car, I received a call. The insurance company would not re-write the policy. Yes, that says RE-WRITE! They insure the property for the seller and they would not write it for me. The seller paid roughly $100 for his coverage (I do not know the amount) and I was expecting to pay around $125 a month. I called around to several companies and brokers and I could not get coverage. I finally found one on the day of the closing for $330 a month. I found one other company - Farmers Insurance - that cut that price by a third (still more than I thought).  In the end, I was able to find insurance and close on the property.  Just an FYI about the state of insurance right now... be careful and make sure they go to underwriting. 

Take care.