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.

[Kevin Koone]

Jason, they're probably correct.  Lots of carriers, including SF have new underwriting requirements for new business, but they'll stay on the current business they have.

The quote you got matches what I would expect.  A lot of companies have stopped writing "rental dwellings" right now.  I do a lot of that business but am hindered by the market right now.  Ask you agent if they quoted Foremost.  That would be an option I'd want to look at it.  If you need help, send me a message.