First Investment - Need Insurance Opinions
Hopefully im posting this in the right place (first post).....I have an accepted offer on a 4U multi family unit north of Dayton OH. I will soon be looking for insurance and need some advice on what kind of policy ill be needing. This is FHA owner occupied and I will be occupying a unit and renting the other 3 out. Since this is my primary residence what kind of insurance do I NEED and what kind is a good idea? Homeowners, Landlord, Umbrella policy, ect.....?
Thanks in advance!!
@Evan L West I did the same thing a few years ago and everywhere I called would only let me do a landlord policy. I suggest David Vanover with Farmers insurance (formerly metlife). He found me a pretty good policy, and he'll also check other insurance places to get you the best deal.
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@Evan L West if you are using a FHA loan, they will require that you have a Homeowners policy. They will not allow you to close with a commercial landlord policy.
Getting a Homeowners policy on a 4 unit can be done, but most companies will only do up to 2-3 units as a Homeowners policy. The policies are out there, but don't be surprised if a few agents say they can't do it.
Now that we know you need a Homeowners policy for this deal, you will want to make sure you add a Landlord endorsement to the policy to extend Liability to the 3 rented units. Once you have this framework, you can go through the specific limits of coverage just like you would with any policy.
Lastly, when you decide to move out, you will need to convert this to a traditional Landlord policy.
@Jason Bott This made me go back and look at my policy and I think I did technically get a homeowners policy with landlord coverage added on.
@Evan L West one of the big decisions you'll need to make is whether you want replacement cost or market value coverage. You're lender may dictate what kind of coverage they will require.
