Hard-to-Place Commercial Property Insurance
Has your property insurance been non-renewed, canceled or turned down? You are not alone. Many standard insurance companies have stopped writing new commercial property business in California, raised their underwriting requirements, or pulled out of entire areas. Owners of older buildings, apartments, vacant properties and buildings in wildfire zones are often told “no” by several agents before they find coverage.
Pacific Southwest Insurance Services specializes in hard-to-place commercial property. As an independent agency serving California since 1965, we work with standard carriers, surplus lines (E&S) insurers and the California FAIR Plan to find coverage for properties other agents can’t place.
Turned down elsewhere? Call (818) 701-1033 or email info@pswinsurance.com. Office hours are Monday to Friday, 9:30 AM to 5:00 PM.
Properties That Are Often Hard to Insure
- Older apartment buildings, especially those built before 1980 or with original wiring, plumbing or roofs
- Soft-story buildings, retrofitted or not yet retrofitted
- Buildings in wildfire or brush areas
- Vacant or partially vacant buildings
- Properties with prior claims, such as water damage, fire or theft losses
- Non-renewed or canceled accounts that need coverage quickly
- Frame (wood) construction and buildings without fire sprinklers
- Restaurants, bars and nightclubs and mixed-use buildings with those tenants
- Buildings under renovation or awaiting repairs
- High-value properties that need more capacity than one insurer will provide
- Distressed or code-deficient properties, and buildings with knob-and-tube or aluminum wiring
Why Properties Get Turned Down
Being declined usually says more about the insurance market than about your building. Common reasons include:
- Insurance companies limiting how much property they write in California
- Wildfire and brush exposure in the area
- Age and condition of the roof, electrical, plumbing and heating systems
- Prior losses or open claims
- Vacancy or type of occupancy
- Construction type and distance to a fire hydrant or fire station
- Rising rebuilding costs that push values above an insurer’s limits
How We Find Coverage
- Standard insurance companies first: when your property qualifies, we start with standard (admitted) carriers.
- Surplus lines (E&S) insurers: specialty insurers that write risks standard companies decline, often with more flexible underwriting.
- California FAIR Plan: the state’s insurer of last resort for property that can’t find coverage elsewhere. It has expanded its commercial coverage in recent years.
- Difference in conditions (DIC) policies: FAIR Plan coverage is limited, so we can add a DIC policy to fill gaps such as water damage, theft and other causes of loss the FAIR Plan doesn’t cover.
- Layered or shared coverage: for large or high-value properties, we can combine several insurers to reach the limits you need.
- Liability, loss of rents and earthquake: we place these alongside your property coverage so nothing is missed.
What to Have Ready for a Fast Quote
- Property address, year built, square footage and number of units or stories
- Construction type and roof type
- Years of roof, electrical, plumbing and HVAC updates
- Fire sprinklers, alarms and security systems
- Occupancy: owner-occupied, tenants, vacancy percentage
- Current policy and declarations page, if you have one
- Non-renewal or cancellation notice, if you received one
- Five years of loss runs (claims history) from your current or prior insurer
- Recent photos of the building, if available
The more complete the information, the faster we can take your property to market. Underwriters for hard-to-place risks want to see updates and good maintenance.
Ways to Improve Your Options
- Update the roof, electrical panel, plumbing and water heaters when you can, and keep receipts
- Install water leak sensors and automatic shutoff valves
- Clear brush and maintain defensible space around buildings in wildfire areas
- Complete a seismic retrofit on soft-story buildings
- Secure vacant buildings with fencing, alarms and regular inspections
- Start the renewal process 60 to 90 days before your policy expires
Why Choose Pacific Southwest Insurance Services
- Family-owned and serving California since 1965, now writing coverage nationwide
- Access to standard, surplus lines and FAIR Plan markets
- Experience with non-renewals, prior losses and older buildings
- Fast certificates of insurance and lender evidence of property
- One agency for your property, liability, commercial auto, bonds and more
- Se habla español
Frequently Asked Questions
My insurance company non-renewed my building. What should I do?
Call us as soon as you receive the notice. California generally requires insurers to give advance notice of non-renewal, which gives us time to shop your property. Send us the notice, your current declarations page and your loss runs so we can get started.
What is surplus lines (E&S) insurance?
Surplus lines insurers are specialty companies that can write risks standard insurers decline. They are regulated differently from standard (admitted) insurers. In California, surplus lines policies are not covered by the California Insurance Guarantee Association (CIGA) if the insurer becomes insolvent, and we will explain the differences before you buy.
Is the FAIR Plan my only option?
Not always. The FAIR Plan is a last-resort option, and it may be more limited than a standard policy. We check standard and surplus lines markets first. If the FAIR Plan is the best choice, we can pair it with a difference in conditions (DIC) policy for broader protection.
Can you insure a building with prior claims?
Often, yes. Underwriters want to know what happened and what was fixed. Repairs, updates and a clear explanation of each loss can make a big difference.
Do you insure properties outside the Los Angeles area?
Yes. We insure commercial property throughout California and can write coverage in many other states.
Related Coverage
- Apartment Building Insurance
- Vacant Building Insurance
- Mixed-Use Building Insurance
- Restaurant & Bar Property Insurance
- Landlord & Rental Property Insurance
- Commercial Earthquake Insurance
- Builder’s Risk Insurance
See all commercial property coverage.
Get a Hard-to-Place Property Quote
Tell us about your property and we’ll shop the market for you. Call (818) 701-1033, email info@pswinsurance.com, or visit our office at 9036 Reseda Blvd., Suite 105, Northridge, CA.