Rental Property Investor · Boonton, NJ · Member since 2017 · 8 posts · 3 votes
Hi BP - I have house hacked a 2-family in northern NJ, living in one unit and renting out the other unit. I have recently moved out of the unit I was living in and will plan on renting it. I have a conventional, owner-occupied mortgage on the property and have an owner-occupied homeowner's insurance policy. I think it's best practice to notify the insurance company that I have moved out and would like to have a revised policy. Do I need to notify the bank at all? Anything else I need to do or anyone else I need to notify of me moving out of my house hack and the property now being a full investment property?
Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes
4y
You don't need to, but I've always given my bank a heads up so there's no surprises. As long as you've been there for a year, you should be good to go!
Real Estate Agent · Portland, CT · Member since 2019 · 761 posts · 849 votes
4y
No, all you need to do is notify the insurance company so they can adjust your premiums. You would probably have to notify the bank so they have your updated mailing address, but they will not make any changes to the loan as long as you stayed at least 1 year.
Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes
4y
You don't need to, but I've always given my bank a heads up so there's no surprises. As long as you've been there for a year, you should be good to go!
Realtor · NJ · Member since 2020 · 277 posts · 138 votes
4y
Hi @Ekrem Bermek, congrats on moving into the next phase of your house hack!
You are correct in that you should notify your insurance provider so that they adjust your coverage to a Landlord's Policy. You do not need to notify your bank/lender.
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
4y
Ekrem,
If you are not dealing with and independent agent (an insurance agent that represents multiple companies) I would suggest getting quotes from one as well as from your current agent. We represent many companies and I find that the best policy for a owner occupied dwelling (Homeowners policy) is not always the best for the same building when it becomes a rented dwelling (Dwelling Fire policy).