Insurance advice for 6 unit apt complex in CA
Hi- I just got a notice of non-renewal from State Farm insurance for my 6 unit apt complex in Long Beach. The policy was $2200/year ($1.1M Bldg coverage and $1M Business liability coverage in this apartment LLC) and I haven't had a single claim in my past 5 year history. Unfortunately I am told most admitted insurance carriers are out of the business for insuring apt complexes in the state of CA (this was even before the LA wildfires this month. So I am left getting a policy with a non admitted carrier for likely 2-3x the price for less coverage. However, someone brought up an idea that i wanted to run by this group. My apartment bldg has 6 units, so it's a commercial loan. HOWEVER, there are two completely separate apartment buildings on the lot. One building has 4 units in it and the other building has 2 units in it. Do I need to get a commercial insurance policy or can I just get two separate Landlord Renters Property Insurance for each building since both buildings are under 4 units? Are there any downsides to doing it this way? Should I be concerned the bank may have issues with this? One thing to note- the building is older (built in 1922), is considered in a historical district, and although each unit has been fully renovated, I have not upgraded all the electrical/roof and plumbing, so that's on the older side which I know is more challenging to get insured... Thanks in advance for any advice/feedback!