So you're saying that the condition is poor enough that they won't insure it, but would do so after various things are to code (or whatever their requirements)? ugh

Yes, exactly!

They'll do Builder's risk, but that won't cover any of our belongings... I accept that we'll have to pay more given that the hosue is riskier to them - like a driver with a bad record - that's ok. I just want someone to insure us!

Right now I'm working with Farmer's - they claim they will, so we'll see, but so did MetLife who then cancelled it. Allstate, Travellers, etc all say no upfront.

Actually the interior is to code - all new plumbing and electric. it's just the outside that's the issue. We're waiting for a grant from the city preservation society to get started on that. We can't touch it before the grant is approved or no grant.

Can you get a separate floater on your stuff, like renters' insurance?

Can you get a policy that is pro-rated so the parts that aren't OK (siding etc.) wouldn't be replaced in the event of a loss. (As you can imagine the insurers wouldn't replace or repair something that was already value-less in the event of a fire.)

What does your mortgage lender think about this? Many, if not all, loans come with the requirement that you obtain homeowners' insurance.

You may have to pay really high rates while the work is being done, but you should be able to get a better deal afterwards.

If you happen to have particularly valuable personal stuff, could you store it in a safe, insured, off-site location, and therefore reduce your casualty risk, which might make you more insurable? Beware of removing everything though, as you have already found out Builder's Risk policies can be expensive and most insurance companies want to know you are actually also at risk with your stuff on site. I know of someone who had a problem with insurance (just keeping it, not making a claim) when they moved out of the house for an extended remodel. Made the insurance co. antsy about an "unoccupied" building.

I'd try to find an agent who will go to bat for you and I would be prepared with endless permits, grant proposals, drawings, plans, before/after photos, and such, and make a big showing of how you are really making a concerted effort to remodel not only to code but to good condition as fast as possible. I'm sure there are crooks and cheats out there who buy wrecks, insure them and then make make bogus claims, so ins. co.s have learned to be wary. Do what you need to do to separate yourself from the bad guys.

Also don't skimp on liability insurance if you are having people come in to help you. Of course all contractors and subs need proof of their own insurance, but if you have friends or casual labor working there you need to have insurance in case someone gets hurt. Including, in some areas, worker's comp. insurance. You could easily lose your house if someone is injured while working there and sues you. (And they would!)

Molly~

I ran into a similar situation. Mom's house had those grey asphalt overlapping shingle siding - the kind that deteriorate around the places where it is nailed up and had weathered and looked bad. Basically the siding itself was in fairly decent shape but there were lots of black showing through. The home was built in late 1800's and only 3 previous owners, all of whom had taken great care of it. Solid as a rock. Mom had upgraded over the years all wiring, plumbing, so interior was good. The exterior was her next project before she got sick. She had same insurance company for many, many years and don't think they ever came to look at it during all that time - just took her premiums. When I decided to move there after Mom died, I called insurance to have it put into my name. They came out and said they wouldn't insure it - even tho I asked for a rider which would delete payment for any siding damage. No mortgage/lenders to deal with but had to have insurance so had to take a loan just to side it so it would "look pretty" for the insurance company. Now what on earth would that have to do with anything I might make a claim for like a fire?! Sure do wish you luck.

No separate floater, like in renter's, from what I've been told.

As for our mortgage co, I'm not sure. We did get a letter stating that if we didn't declare our policy (which we had done months before), they'd give us one for something like $4K. While we're more than willing to pay more in the circumstances, that was waaaaaaay more.

We don't have any one item of major value, but to replace all furniture, etc would be a lot.

Farmer's has said they'd do it...we'll see.

Thanks for the help.

btw - we had builder's risk, but that was before we moved our property in.