Need Multifamily Owner Occ Homeowner's Ins

[Sam Kay]

Hello BP team!

Having a tough time finding a company to cover a multifamily property that I intend to owner occ in Jersey City. And when I do, the premiums are insane. 

Anyone have any homeowner insurance contacts local to Jersey City?

Thanks!

Sam

[John Mocker]

Sam,

We are finding several areas are impacting accounts in the Northeast:

1. Carriers are stopping writing new business in certain areas or stopping completely

2. Rebuilding costs have gone up a lot and that causes the Homeowners premiums to rise

3. The rates themselves have also increased.  Companies are blaming it on the reinsurance rates they are paying going up.

If the home you are looking at is Brick construction the costs may be cheaper if you can find a company that will do "Functional Replacement Cost"  That means, in the event of a total loss, the cost to rebuild is based on what is needed to regain the same function.   That would probably mean a wood construction home of the same size.  

Other ways to lower costs:

1. Higher deductibles

2. Alarms

3. Lowering the contents limit.   (most homeowners policies give an automatic 50% to 70% of the Building limit as contents.  In the case of a Multi-family, that may be for than you need)

Some companies require "Lead Safe" certifications for Multi-families, even owner occupied.  If the property you are purchasing does not have a Lead Safe certificate, check into the cost to do that.  If that opens up a better priced program, you may be able to recover the cost of the Certificate in the savings on the Insurance.