Home insurance for a 14-unit multi-family?

Minneapolis, Minnesota
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Home insurance for a 14-unit multi-family?

Vivian Vo
Member since 2022 · 1 post · 0 votes

Shopping around. So far, the rates we're getting are much higher than the previous owners'. 

Building is over 100 years old. 

Any recs are appreciated! 

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Jared Townsend
Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
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4) Many people grossly underinsure their properties. If you're getting appropriate coverage limits or endorsements then that could significantly increase the cost. Have you reviewed the old owners' coverage to compare to your quotes?

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  • Jared Townsend
    Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
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    Are the agents you're working with explaining why the rates are so different? It could be a number of reasons:

    1) The prior carrier will keep an existing policy but not write new ones

    2) The property was insured a while ago (possibly before a major underwriting cliff like 100+ year old construction) and the home won't qualify when underwritten today

    3) The home needs update that disqualify it from more competitive carriers

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  • Jared Townsend
    Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
    1y

    4) Many people grossly underinsure their properties. If you're getting appropriate coverage limits or endorsements then that could significantly increase the cost. Have you reviewed the old owners' coverage to compare to your quotes?

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  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 689 posts · 260 votes
    1y

    @Jared Townsend is on the money with these possibilities and questions.  This is a very common issue.

    One other thing I'd add is purchases made with a lender involved may require coverages that the prior policy did not contemplate which can drive the cost up significantly.

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  • Cody Hilke
    Member since 2025 · 2 posts · 0 votes
    1y
    Quote from @Vivian Vo:

    Shopping around. So far, the rates we're getting are much higher than the previous owners'. 

    Building is over 100 years old. 

    Any recs are appreciated! 

    As others have said the prior owner may have had much lower coverage or they may have been included in a portfolio policy which will bring down the premiums. If you haven't already do a side by side comparison of coverages and speak with a commercial insurance broker, not a home loan insurance provider. A commercial broker will be able to get you better policies than someone who does primarily home loans. A broker that compares options among dozens of providers is also helpful compared to a captive agent that only has one company's policy. Your coverage requirements may also be governed by your loan documents and what the lender requires. I know some lenders, especially securitized loans, can be very strict with their requirements. At the bank I work at we aren't as strict so long as the coverage is reasonable.
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