I am currently in the process of purchasing a building in Los Angeles County. The property needs a little earthquake retrofitting, and the bank requires that I carry earthquake insurance until that work is complete.
Most insurance companies actually partner with the California Earthquake Authority, but they will only write policies on up to 4 units. This building is 9 units.
Any recommendations on providers?
@Matt Martin do you have an insurance broker? If not, suggest going through them.
Hope you negotiated the earthquake retrofitting into the price. On 9 units, depending on the scope, you could be in the 50k plus range or more. Unfortunately earthquake insurance is pretty expensive considering that if one happens most of these companies will probably go under.
Shoot me a message if you want to connect. Also based in LA and have some properties in the area.
I’m a commercial insurance agent at an independent insurance brokerage. You will want to use an independent insurance brokerage who can access an earthquake insurance wholesaler. They all access the same 5 or 6 eq carriers. You should use an agent who can provide estimates and premium options for different limits so you can present that to the lender and see if you can negotiate less coverage to save $$$. Let me know if I can help with anything!