Insurance for Older Apartment Buildings

Older apartment buildings can be insured, but fewer markets will look at them, and the terms depend on what you can show about the roof, wiring, plumbing, and heating. Owners of buildings with original or aluminum wiring, fuse panels, galvanized or cast iron plumbing, polybutylene, an older roof, or frame construction usually get better results by documenting update history and going to markets that write older habitational risk.

We review the building and your current coverage, and place property, liability, and related coverage through a licensed insurance agency with access to admitted and excess and surplus lines markets. The review is free.

Submit your older building for review Call (949) 441-9365

Why do older apartment buildings get declined or quoted high?

An underwriter pricing an older building is pricing the systems, not the year on the deed. When the submission says little more than the year built, the underwriter has to assume original wiring, original plumbing, and an aging roof, and many standard package programs simply rule that out. The result is a decline, a quote far above what the owner expected, or an offer with narrowed coverage such as a water damage exclusion or actual cash value on the roof.

Buildings from the 1920s through the 1970s tend to share the same concerns: knob-and-tube or cloth-insulated wiring, fuse boxes or panel brands underwriters flag, aluminum branch wiring from the era when it was used in residential construction, galvanized steel or cast iron supply and drain lines, polybutylene supply lines in buildings that were repiped later, older roofs, and wood frame construction without sprinklers. None of these is automatically uninsurable. Each is a question the underwriter needs answered.

What do underwriters ask about an older apartment building?

Update years by system. The year the roof, electrical, plumbing, and heating were last updated, and whether each update was full or partial.
Electrical panel and wiring. Panel type and brand, breakers or fuses, service amperage, whether any knob-and-tube or aluminum branch wiring remains, and whether it has been inspected or repaired.
Plumbing material. Copper, PEX, galvanized steel, cast iron, or polybutylene, for both supply and drain lines, and how much has been replaced.
Roof age and condition. Roof type, when it was replaced, and its current condition. The roof age article covers what underwriters look for.
Heating. Boiler, furnace, or individual units, their age, and service records. Boilers also bring equipment breakdown into play.
Fire protection. Sprinklers, smoke detection, fire alarm monitoring, and fire separation between units, which matter more on frame buildings.
Occupancy and vacancy. How many units are occupied, and whether the building is under renovation. Vacancy conditions can limit coverage.
Prior water losses. Water claims on an older building lead an underwriter straight to the plumbing questions. Loss runs show what happened and what was fixed.

What documents should you send for an older building?

Current declarations pages for property, liability, and umbrella.
Loss runs from your current and prior insurers.
A statement of values: address, unit count, square footage, construction, stories, and occupancy for each building.
Invoices or permits for roof, electrical, plumbing, and heating updates, with dates.
A licensed electrician's letter describing the panel, service amperage, wiring type, and condition, if the electrical system is original or partly original.
A plumber's letter or repiping invoices if the plumbing has been partly or fully replaced.
Any prior insurer inspection report and the steps you took on its recommendations. The loss control inspection Q&A explains these reports.
Recent photos of the roof, electrical panels, water heaters, boiler room, and common areas.

Missing a few of these is normal. Send what you have and the gaps can be worked on while the submission is being built.

Declined or quoted high on an older building?

Send your declarations pages, loss runs, and update history. We review the building and take it to markets that write older habitational risk.

Start the free coverage review

How do updates and documentation change your options?

Documentation moves a building from "unknown" to "known", and underwriters price known conditions more favorably than unknown ones. A building with original wiring and an electrician's letter confirming it is in safe working order is a different submission from one that simply lists the year built. The same is true of a partial repipe documented with invoices, or a roof replacement documented with a permit.

Real updates widen the market further. Replacing a fuse panel with breakers, rewiring, repiping supply lines, or replacing the roof can bring more admitted markets back into the picture, and can affect deductibles, water damage terms, and whether the roof is settled at replacement cost. For aluminum branch wiring, the U.S. Consumer Product Safety Commission's publication Repairing Aluminum Wiring describes the repair methods it recognizes; invoices for that work, done by a licensed electrician, are worth including.

Older buildings should also carry ordinance or law coverage, because after a loss the building department can require the damaged systems to be brought up to current code, and that cost is not covered by a standard property limit.

What should you do short term and long term?

Short term: get the building placed

Start well before your renewal date so there is time to gather letters and invoices.
Get an electrician's letter and photos of the panels, even if nothing has been updated.
Expect that the first placement may be in the excess and surplus lines market, with a higher deductible or a water damage sublimit.
Check that whatever you bind still satisfies your lender's insurance requirements.

Long term: improve the building's insurability

Plan system updates in the order underwriters care about most for your building, usually electrical, roof, and plumbing.
Keep every permit, invoice, and inspection report in one file so each renewal submission is easy to build.
Add water leak detection and automatic shutoff valves, and follow the water damage prevention guide.
Remarket the account after major updates, since the building may now fit markets that declined it before.

If your current insurer has already sent a notice, see what to do when your apartment building insurance is non-renewed.

Frequently asked questions

Can you insure an apartment building with knob-and-tube or aluminum wiring?

Often, yes, though fewer markets will look at it and terms depend on condition. Underwriters want to know how much of the original wiring remains, whether it has been inspected, and what was repaired. A letter from a licensed electrician describing the system and its condition, plus invoices for any rewiring or approved aluminum repairs, gives the underwriter something to rate instead of a guess.

Why was my older apartment building declined or quoted so high?

Usually because the underwriter could not confirm the condition of the roof, electrical, plumbing, or heating systems and priced or declined for the worst case. Many standard package programs have eligibility rules tied to building age or system updates. A submission that documents update years and condition, and that goes to markets writing older habitational buildings, including excess and surplus lines markets, often changes the answer.

Does an electrician letter really help?

Yes. When the original wiring or panel is the concern, a letter on the electrician's letterhead stating the panel type and amperage, the wiring type, the service upgrade date if any, and that the system is in safe working order is one of the most useful documents an owner can send. It turns an unknown into a known condition.

Is polybutylene or galvanized plumbing a dealbreaker?

Not always. Some markets decline it, others exclude or limit water damage, and others will write it with a higher water damage deductible. Partial replacement, water leak detection, automatic shutoff valves, and a clean water loss history all help. Replacement invoices showing which buildings or risers were repiped should go in the submission.

What coverage gaps are common on older apartment buildings?

Ordinance or law coverage is the big one: after a loss, building codes can require upgrades to wiring, plumbing, or fire protection that a standard property limit does not pay for. Actual cash value settlement on the roof, water damage sublimits, and vacancy conditions are others to check on the policy you are offered.

Who can help me get coverage for an older apartment building?

We review older apartment buildings and place coverage through a licensed insurance agency with access to admitted and excess and surplus lines markets. Send your current declarations pages, loss runs, and update history, and the account is taken to markets that write older habitational buildings. The review is free.

Get Your Older Apartment Building Reviewed

A free review of the building and your current coverage, with placement through a licensed insurance agency with access to admitted and excess and surplus lines markets.

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