Ask Your Peers Earth Quake Specialty Insurance for 3 Story Office Building in San Diego CA (Closed)

0 Verified Reviews - 0 of 5.0

Karuna Lala Sahni, KLS Insurance & Financial Services - Chatsworth, CA 91311

Reputation: 83 - Total posts: 8

Hello Everyone, We need your help desperately, the bank requires the following:

1) That if the property were to be partially damaged due to an earthquake and the owner was not allowed to be rebuilt (due to the Alquist-Priolo Act), that the policy would cover 100% of the difference between the cash settlement of the earthquake policy and our loan amount ($4,350,000). In the case of an earthquake, in any situation where the earthquake insurance policy did not pay out a dollar, that the specialty policy would fund the full amount of the loan.
We have a EQ quote but it excludes Ordinance Law--I think the Bank requires a gap insurance. If we do not provide this coverage, the client will not be able to close escrow and loose his $50 K deposit, please help.
Thanks a Million

George Lala

10 year(s) 11 month(s) ago

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Jimmy Clark, Harden - Tampa, FL 33607

Reputation: 15 - Total posts: 3

Ordinance and Law will not cover that. That is called down-zoning insurance. You need to get in manuscript on the property form.

10 year(s) 11 month(s) ago

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Althea Jacques-Ireland, NoBe Insurance Services - North Bethesda, MD 20852

Reputation: 519 - Total posts: 52

Try Lexington Insurance Company. One of my Insured's had a portfolio of buildings in CA and they provided full replacement cost coverage including Ordinance & Law.

10 year(s) 11 month(s) ago

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durlandi frapper, r - Blackhawk, CA 94506

Reputation: 95 - Total posts: 15

George, I had something similar in Los Angeles, Sam at Triglobal had a market for this....his # is 855-815-6815

10 year(s) 11 month(s) ago

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5 Verified Reviews - 5 of 5.0

Nancy Elias, CompleteMarkets - Big Bear City, CA 92314

Reputation: 4229 - Total posts: 335

Hi George,

Wow! Look at the great feedback you've gotten! I sure hope this helps out.
If not, you can try this approach. I was conducted a search for companies that write Earthquake Insurance in California and was able to locate a verity of companies that can write this. Click Here to fill out the submission form and find out if any of them can help.

Good luck!

10 year(s) 11 month(s) ago

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durlandi frapper, r - Blackhawk, CA 94506

Reputation: 95 - Total posts: 15

George, sorry Sam is at 1-855-615-6815

10 year(s) 11 month(s) ago

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1 Verified Reviews - 5 of 5.0

Bill Lohman, Legends Environmental Services - Laguna Beach, CA 92656

Reputation: 160 - Total posts: 17

Here’s what I suggest: Get them a quote with ACV valuation of $4,350,000 which includes ord/law coverage. California is a valued policy state. If there is a total loss and the valuation is ACV, the face value of the policy would be the settlement amount. Ord/law coverage A would indemnify the lost value of the undamaged portion of the building if they were unable to rebuild. Their talk about a “specialty policy” and “gap insurance” is a waste of time. Let me know if we can help. Bill Lohman 714-955-1560

10 year(s) 11 month(s) ago

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