couple of questions from a first time investor

[Rino I.]

Hello all, I am new to the site. I've been doing a lot of homework and asking questions about purchasing my first rental property.  Ill be posting more questions shortly :)

I found a property which is a Triplex. The issue is, I'm purchasing the property fully rented and taking a mortgage out as non owner occupied loan. This comes with a bigger down payment (25% down) and a higher interest rate.  I'm ok with that.. my problem is now getting homeowner insurance. 

I was trying to get a home owners quote from my current auto insurance company, which I used for my home insurance when I had my home last year.

The problem I'm having is, I sold my home last year and have been living back with my family.. so I no longer have a personal home with home owner insurance and the insurance company wont give me home owner insurance for a non owner occupied home.  They will only give insurance if its owner occupied 

I don't think I can tell my mortgage company that I will be living there, and then getting the insurance as owner occupied,  when I wont be.. I believe that could cause fraud?

I'm from New Jersey, is this just a rule from my insurance company?? I use NJ M

 Any suggestion?

Thank you

[Bjorn Ahlblad]

Speak with another insurance company you want LL or owner insurance for the triplex. Any property insurance company I am familiar with will write you an insurance policy for a non owner occupied investment property. Welcome to BP!

[Earl White]

Quote from @Rino Illiano:

Hello all, I am new to the site. I've been doing a lot of homework and asking questions about purchasing my first rental property.  Ill be posting more questions shortly :)

I found a property which is a Triplex. The issue is, I'm purchasing the property fully rented and taking a mortgage out as non owner occupied loan. This comes with a bigger down payment (25% down) and a higher interest rate.  I'm ok with that.. my problem is now getting homeowner insurance. 

I was trying to get a home owners quote from my current auto insurance company, which I used for my home insurance when I had my home last year.

The problem I'm having is, I sold my home last year and have been living back with my family.. so I no longer have a personal home with home owner insurance and the insurance company wont give me home owner insurance for a non owner occupied home.  They will only give insurance if its owner occupied 

I don't think I can tell my mortgage company that I will be living there, and then getting the insurance as owner occupied,  when I wont be.. I believe that could cause fraud?

I'm from New Jersey, is this just a rule from my insurance company?? I use NJ M

 Any suggestion?

Thank you

Perhaps you can take ownership in an LLC and lease it back to yourself? I'm not 100% sure you'd have to run it by your lender. This would also give you some privacy / liability protection in any case.

[Kevin P.]

Quote from @Rino Illiano:

Hello all, I am new to the site. I've been doing a lot of homework and asking questions about purchasing my first rental property.  Ill be posting more questions shortly :)

I found a property which is a Triplex. The issue is, I'm purchasing the property fully rented and taking a mortgage out as non owner occupied loan. This comes with a bigger down payment (25% down) and a higher interest rate.  I'm ok with that.. my problem is now getting homeowner insurance. 

I was trying to get a home owners quote from my current auto insurance company, which I used for my home insurance when I had my home last year.

The problem I'm having is, I sold my home last year and have been living back with my family.. so I no longer have a personal home with home owner insurance and the insurance company wont give me home owner insurance for a non owner occupied home.  They will only give insurance if its owner occupied 

I don't think I can tell my mortgage company that I will be living there, and then getting the insurance as owner occupied,  when I wont be.. I believe that could cause fraud?

I'm from New Jersey, is this just a rule from my insurance company?? I use NJ M

 Any suggestion?

Thank you

 Definitely do not get insurance under any false pretense. A lot of the major name brand insurance carriers won't cover landlord insurance or anything too close to the water. My agent set me up with Cumberland mutual a long time ago so I know they may be a good option for you here in New Jersey. Good luck. You will definitely find insurance and it shouldn't be too difficult.

[Joseph Guzzardi Jr]

@Rino Illiano Welcome to BP. I'd be more than happy to assist you. Congrats on taking action!

[Zachary Ware]

I would recommend speaking with an insurance broker, possibly one that works in your area. You should be getting a landlord's policy which is specific to investment properties and you will not be required to live there.