House hacking with duplex- umbrella or landlords insurance ?

Question

We purchased a duplex and will be living on 1 side and renting the other. I found out llc is not a good idea. Do I need umbrella insurance or landlords insurance or both? Landlord is significantly more than umbrella.

John Mocker · Answer

Cindy,

If the duplex is owner occupied there are dozens of quality Insurance companies that write a Homeowners policy for an owner occupied 2 family.  The Homeowners policy will have coverage for

1. Building (look for Replacement cost coverage with Special form)

2. Contents (only your contents are covered, not the tenants contents.  They need to get their own renters policy)

3. Loss of Use (for the costs if you have to live elsewhere after a covered loss)

4. Loss of Rents (for the loss of rents you would receive after a covered loss)

5. Other Structures (for detached structures such as garages, sheds, etc.)

6. Liability (covers your personal Liability for Bodily Injury and/or Property Damage)

7. Medical Payments (covers medical costs of an accident on the property)

There are many endorsements available and you should discuss the coverage with a qualified Independent Agent (they represent multiple companies).

An Umbrella policy provides an Liability Limit that can provide coverage if a claim exhausts the limits of your Homeowners, Auto, Boat, motorcycle, etc. policies.   I think I would consider adding that type of policy, especially since you will be a landlord.

Cindy Joseph · Answer

Thanks, what’s the difference between the two? My understanding that umbrella covers liabilities after homeowners insurance maxes out