Rejected by under writers

[Ahmad H.]

Hello,

I have a 3-Family house in Albany NY under contract with a 2-car detached garage that cannot be used (roof is collapsing, structural issues). Removal according to the inspector would cost around 10k and repair about 20-25k. The seller has the garage "as is" in the sale. I am trying to get insurance for this property before closing and so far has gotten rejected by the under writers of Amica and Nationwide (company that the property is currently insured under). The under writers are willing to give me 30 days to fix the garage or they will revoke the policy. I have the money to fix the garage but I do not see any return or value in doing so. Any suggestions about how to approach this?

Ideally I would like to get the property insured without any repairs even for a slightly higher premium.

Also, I am curious if I am not able to get insurance for this property will this fall under the mortgage contingency in the contract since the bank requires insurance to issue the mortgage?

[Jean Bolger]

I'm not exactly clear what you're proposing. Do you mean you just want to leave the derelict garage and let it fall down eventually? I can't imagine any insurer would go for that, especially on an income property with tenants. It's an accident (and potential liability claim) waiting to happen. I think you should just tear down the garage.