Unique Property Insurance

[Bernard Skaggs]

I have a 5 unit property that I bought about in November of last year.  It consists of 2 Quonset huts and a small separate studio unit.  The 2 Quonset huts are 20'X50' and are divided in half to create 2-500 square foot studio units in each Quonset hut.  1 full Quonset hut (2 units) has already been completely gutted and remodeled to put in new electrical, plumbing, insulation, a/c, etc.  The other Quonset hut is in the middle of being remodeled.  The Quonset huts were located on the property in 1948, on the outskirts of town, which, of course, now is the middle of the city.  The units are very cute and performing well as medium-term fully furnished studio rentals to nurses since there is a large hospital nearby.  My insurance company (Nationwide) through their lack of wisdom, has decided to drop my policy for the simple reason of the building type.  My broker has searched and found a mobile home insurance company that will insure the units, but the cost is super high.  Does anyone have any suggestions or ideas on how to reduce this unexpected cost?

[John Mocker]

Bernard,

I suspect that you will have more luck insuring this property with a commercial policy (business owners or package).  I would seek out independent agents (that represent multiple carriers) that write commercial insurance and are licensed in your state.   Multiple buildings and multiple construction types on the same property are easier on a commercial form.  I think they may be more accepting of the hut construction as Prefab metal structures are more common in business situations.