Insurance on a 6 unit property in California

[Kurt Z.]

The property is 3 buildings each with 2 Townhomes. I received a quote from my primary insurance broker at State Farm. He carries my auto, home, umbrella, etc. He underwrote it as 3 residential buildings. Any reason not to go this direction? Can anyone suggest some good commercial carriers/Brokers in Northern California? Is there any good guidelines on cost per unit for small apartment buildings in California? I also want to include EQ insurance. Thanks!!

[John Mocker]

Kurt,

We represent many companies for personal Insurance.  Not many will insure multiple buildings on the same property.  I have a homeowners policy that has two houses.   We had to do a dwelling fire policy on the extra house.   I did not insure Liability on that dwelling fire policy.  Rather, we were able to extend the Liability from the homeowners policy to cover that house as well.  My experience with that leads me to two cautions:

1. Get in writing from the agent that state farm knows that it is insuring 6 units on one property.  In case the agent has not cleared it with State Farm it will help you in suing him/her later if State Farm denies coverage.   If they have cleared it with State Farm, the letter or email should not be a big issue.

2. Do not have more than one company on the Liability.  If later some other company offers a better price to insure one of the units don't move the coverage until you know how the policies will handle the liability (suppose someone falls on the property and sues you, which company responds?.)

I would check with Independent agents that represent multiple companies and that write both Commercial and Personal policies in your area.  That may point out other areas of concern with how to insure this property