MIXED-USE PROPERTY CASE STUDY
Heritage Mixed-Use with Hospitality Tenancy
A 1920s heritage building in Sydney's Inner West with a ground-floor cafe and residential above. Eight insurers declined. The owner came to us uninsured.
THE SITUATION
The owner of a heritage-listed mixed-use building in Sydney's Inner West came to us without any insurance in place. The building, constructed in the 1920s, had a cafe operating on the ground floor with residential tenancies above.
They'd approached multiple insurers and brokers before reaching us. Eight had declined outright. The combination of heritage construction, a hospitality tenant with a commercial kitchen, and the building's age put this risk outside standard insurer appetite.
Being uninsured wasn't an option. The building represented a significant asset, and the cafe tenancy introduced fire and liability exposures that needed proper cover.
OUR APPROACH
We started with a full risk assessment of the building. Heritage buildings have specific underwriting considerations - original construction materials, fire separation between commercial and residential sections, and the cost of heritage-compliant repairs if something goes wrong.
Our approach focused on:
- Detailed risk presentation: We documented the cafe's fire safety measures, extraction systems, and cooking equipment in detail for underwriters
- Heritage valuation: We ensured the sum insured reflected heritage rebuild costs, not just standard construction rates
- Specialist market access: We approached underwriting agencies with specific appetite for heritage mixed-use risks
The key was presenting the risk properly. A one-page application form doesn't do these buildings justice. We put together a comprehensive submission that gave underwriters enough confidence to quote.
THE CHALLENGES
Fewer insurers have appetite for heritage buildings. The 1920s construction means original materials, potentially non-standard wiring, and rebuild costs that are significantly higher than modern buildings due to heritage compliance requirements.
The cafe tenancy compounded things. Commercial kitchens represent an elevated fire risk, and when that risk sits directly below residential tenancies in a heritage building, most underwriters step away.
The owner had received one quote from another insurer at around $45,500 - which was commercially unviable. They needed competitive terms, not just any terms.
THE OUTCOME
We placed cover through a specialist underwriting agency at approximately $15,400 annual premium.
That's a saving of around $30,000 compared to the only other quote the owner had received (~$45,500). The policy covers the building structure, public liability, and loss of rent for both the commercial and residential portions.
The owner went from being completely uninsured - after 8 declines - to having comprehensive cover at a premium that made commercial sense. That's the difference specialist market access makes for mixed-use properties.
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Heritage buildings, hospitality tenants, older construction - we've placed cover for all of them. If mainstream insurers won't quote, we'd like to hear from you.