new property insurance troubles

Investor · Norwalk Ohio · Member since 2023 · 18 posts · 21 votes

I'm an amateur RE investor out of northern Ohio. I recently bought a property that consist of 2 single family houses on 1 parcel of land. My original insurer if threatening to drop me and most of the insurance companies I'm trying to get quotes from aren't even answering me with a quote. Any advice on what to do? It is a difficult property for these insurance companies to figure out. Thanks

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Kenneth GarrettPro Member

Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes

8mo

So sorry Steadily is dropping you. Is there a reason for this? You can try NREIG (National Real Estate Insurance Group). As others have said you can try to reach out to an insurance broker.

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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
8mo
@Gavin Wynn
If these are rentals you can try Steadily insurance. They specialize in landlord policies.
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- Gavin Wynn
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  Investor · Norwalk Ohio · Member since 2023 · 18 posts · 21 votes
  8mo
  Quote from @Kenneth Garrett:
  
  @Gavin Wynn
  If these are rentals you can try Steadily insurance. They specialize in landlord policies.
  
  They are the ones dropping me.
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Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
8mo
@Gavin Wynn
Did you try reaching out to any insurance brokers to see if they have any carriers that will cover it? Is the property zoned as a single-family or duplex on one parcel? Some of these properties in Cleveland will be zoned incorrectly, which makes things more difficult
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Andrew BornPro Member
Insurance Agent · McLean, VA · Member since 2018 · 13 posts · 7 votes
8mo
Most direct writers and captive agents (State Farm-type setups) are limited to a short list of “clean” residential boxes. Once you have two dwellings on one parcel, you’re already outside what their quoting software is designed to handle which is why you’re getting non-responses. You should talk to a local independent agent that has access to speciality/commercial carriers. Look for someone that regularly insures rental properties (if this is in fact a rental).
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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
8mo
So sorry Steadily is dropping you. Is there a reason for this? You can try NREIG (National Real Estate Insurance Group). As others have said you can try to reach out to an insurance broker.
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Madelyn Felix
Rental Property Investor · Denver, CO · Member since 2024 · 60 posts · 10 votes
8mo
Quote from @Gavin Wynn:

I'm an amateur RE investor out of northern Ohio. I recently bought a property that consist of 2 single family houses on 1 parcel of land. My original insurer if threatening to drop me and most of the insurance companies I'm trying to get quotes from aren't even answering me with a quote. Any advice on what to do? It is a difficult property for these insurance companies to figure out. Thanks
If your property is deemed uninsurable, it won't be marketable to anyone else. And it cannot be financed.

The best thing you can do is address the issue.

Why are they dropping coverage?

They may have visited the property and found deteriorating conditions, T-lock style roof that isn't made anymore and can't be repaired, or something else that didn't match up with the original description when insurace was placed.

Call your representative at Steadily to find out what needs to be true in order to keep coverage, then go from there.

If you can tell me why they're dropping you, I can be more specific about how to address the issue to help.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 678 posts · 259 votes
8mo
I suspect the reason you're being dropped is because of how the policy was written originally with regards to the two dwellings or they general issue with two dwellings on the same parcel.
It's all about the reasoning for the cancellation and the communication up front about the actual property characteristics.
One way or another if the properties are in good condition you should be able to get coverage.
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 924 votes
8mo
@Gavin Wynn
Hey Gavin, properties like two single-family homes on one lot can be tricky for standard insurers. The best approach is usually working with an independent broker who knows specialty carriers, or looking into surplus lines insurers that handle non-standard setups. Also, connecting with local investors can help since they often know which companies will cover unique situations like this.

[email protected]614-418-6081
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