How to get Mixed-Use Property Insurance

[Chichi Aguoji]

Hi, all,

I'm currently in contract to purchase a mixed-use 3-family in Brooklyn.  The lender is requesting an insurance quote and I'm having trouble securing a quote.  Some companies don't like the mix of residential and commercial.  Some companies don't like that I won't be operating the business.  Some companies don't like that the building will be owner occupied.  I've spoken to a few brokers and one us recommending I get surplus line insurance, I'm hesitant given that the state doesn't guarantee these surplus line insurance companies given that they're unlicensed.

Does anyone have any ideas around this?  I didn't anticipate securing insurance would be a roadblock especially if I'm willing to pay for the risk.

Thanks in advance,