Insurance for 1978 fourplex

[Jason Solley]

I now own two identical fourplex units side by side in Norman, OK. I have owned the first one for six years and have it insured with State Farm on a DP-3 policy with $476,000 in coverage for $2,515 per year.

I just closed on the second property yesterday, but State Farm informed me that they will no longer insure a fourplex that is more than 30 years old unless I can provide proof that all the electrical, plumbing, and HVAC systems have been replaced. Initially, my agent thought she could obtain a variance to get it covered, but State Farm denied this request. However, they are keeping the complex that I originally owned insured.

So far, the only coverage I have found is with Safeco, which offers similar coverage but costs over double, approximately $6,000 per year.

Is what my State Farm agent telling me correct, or is there a mistake on their part? Do you have any suggestions for a more affordable policy? I don't need anything elaborate; just insurance that would protect me in worst-case scenarios like a tornado or fire.