Insurance Journal Forums

Hi, any admitted market out there that would write TICs?

I am going to admit....i don’t know—- what is a TIC? Tenants in common?

YES tenants in common like a HOA

Without knowing what line of coverage and what state, we may not be as helpful....could you give us a little more info please? And have you been declined by anyone in particular? That’s helpful too.

TIC/Tenants in Common is a relatively common title holding in high property value, multi family dwellings like San Francisco.

It's not quite an HOA. In the case of multi family dwellings, there are multiple owners with equal standing who have side agreements as to occupancy of individual units. Real estate loans are made to the group of owners generally and the loans are structured to allow for owners to sell and move on with a new tenant in common moving in and assuming the debt. Needless to say, there are not a lot of lenders willing to do the customizing work to structure a loan to function in a TIC situation.

Insurance can also be tricky, as title is in everybody's name. Many conventional carriers won't touch a TIC for personal lines coverage because of the nature of the risk. Anyone placing coverage has to do more than request a policy for a duplex or triplex or four plex with multiple names on the named insured line. An agent also has to deal with the exposure of contents for each unit and liability for each unit. There are a small number of carriers who will structure a policy that deals with TIC.

Most TIC's that I've been aware of are merely marking time until the building can be converted to condo, thus giving much more flexibility to both financing and insurance with a condo's clearly defined jurisdictions. It is local zoning laws, and politics,presumably protecting the rental pool that hold up condo conversions.

Thanks! I appreciate your information. Cheers to a great day!