Options for Liability-only coverage on home w/ foundation issues?

[Justin Adams]

This is my first post here, so please be gentle if I'm messing anything up! I'm entering the world of real estate investing with a 200-year-old fixer-upper triplex that has some foundation shifting going on. Nothing that can't be fixed, and it's not falling down tomorrow, but so far I can't find any insurance companies that will insure it.

Not a huge deal; with the price I'm paying, it could fall over and I wouldn't care that much! What concerns me is liability coverage. According to them, my primary residence homeowner's insurance liability coverage cannot be extended to cover the new property because there is a structure on the property, and an umbrella policy, apparently, will also not apply to a property with (a) no liability coverage of its own and (b) an existing structure.

What are my options for getting liability coverage on this property while I fix it up? We're talking about maybe 3 months until I can just get normal rental-property insurance, but during that time it will be vacant and have LOTS of contractors in there, so I don't want to be sitting with no coverage if something happens. This can't be the first time this has happened!

Thanks in advance!

[Derek Lacy]

Not suggesting to not go the insurance agent route, but here's what I see a lot of from direct writers. They pay about $10-12 /hour to their service reps in a large call center and give incentives for getting you off the call asap. As in if you have less than x number of minutes on an average call you get a bonus that week.

So with that being said. No idea if USAA acts in such a manner.

But there is a ready made homeowners endorsement for this. HO 04 40.

Call them and ask for it by name. It's likely that the rep you spoke with does not know it exists. It's also likely that USAA just does not offer that endorsement (this endorsement spreads coverage to uninspected properties). If they do have it, you will find it costs less than $50, usually closer to $15.

As you already can tell, working with an agent will mean you don't have to guide a CSR by the nose to help you, so even if it costs $100 more it's money well spent.

Here's a copy of that form.

http://www.quakerma.com/FaF/Policy%20Forms/Lloyds/Homeowners/HO0440%20Structures%20Rented%20to%20Others.pdf

Of course pm with any specific questions or a second opinion.