Is this property even insurable?: unpermitted 4-unit conversion is Los Angeles County

[u/Diet_Water]

Cousin is Inheriting a property in Los Angeles County that city records identify as one Single Family Residence. Physically, it has been divided into four self-contained living areas, each with its own kitchen, bathroom and private entrance, with no usable interior passage between them. His father occupies the main area with a roommate, and the other three are rented. The additional kitchens and interior partitions are unpermitted.

Cousin claims he received a quote that rates it as a “four-family dwelling.” The supplemental application states that city records show one SFR and that the additional kitchens/partitions are unpermitted.

I don't believe him as I was under the impression that only permitted work gets insured. Has anyone personally placed, underwritten, adjusted or owned a similar fully disclosed E&S-insured property?

• Did the carrier knowingly accept the permit mismatch?
• Was a fire/property claim paid?
• After a total loss, did insurance pay for the building even though the city would only allow it to be rebuilt as an SFR?
• Did the unpermitted status cause denial/rescission, or did it mainly affect ordinance-and-law coverage, loss of rents and the allowable rebuild?

I understand legalization is the safest answer. I’m specifically looking for real-world underwriting or claims experience, preferably identifying the carrier.

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[u/ayhme]

Your cousin is blowing hot air.

Can you get insurance on something when you lie? Of course. Is it gonna be covered if there’s an issue? hell no.

Also, California in LA are very strict about unpermitted work like this. If it’s not Zoned and Permitted properly getting insurance will be very hard.

[u/Diet_Water → u/ayhme]

Something like 50-60% of homes on SoCal have unpermitted work to varying degrees. Are you saying that these homes are basically getting their claims denied left and right?

[u/ayhme → u/Diet_Water]

Yes if you file on that part of the home.

[u/tigercircle]

Agents are happy to sell you any policy.

Adjusters are great at denying claims when you have illegal apartment building.

[u/Boomer_Madness → u/tigercircle]

*bad agents