Insurance questions regarding a shop

[Jason Davis]

Hi,

I have a shop on the same property as my house located in town in a residential area. The shop has three units, all under one utility bill. No water, no sewer. Just heat and electricity that I pay. 

I want to rent out two shop units to people who might want a small work space for a car or a project and I keep the third one for my personal use.  The entire property is listed as a single family home. 

I spoke with my home owners insurance and it doesn't seem like that's an option. So I started looking into a commercial policy for the shop. Does anyone have a similar property and if so what did you do to get proper insurance. And maybe a few insurance company recommendations. Any idea what a policy like this might cost?

Thanks

[John Mocker]

Jason,

I would find an independent agent that writes commercial insurance.  One that writes auto repair/auto body shops may be a good place to start.   If you can find a company that will write the commercial building on one policy and a homeowners on another that may get you the best price/coverage.  I say the same company because, if it is one property and someone gets injured outside between the buildings, there will be a question of which policy responds.  If both are with the same company, there is no advantage to arguing about which pays.   With different companies on the  policies you could get delayed due to a dispute on which needs to pay.  

If you can't get separate homeowners and Commercial coverage, you will probably have to insured both buildings under a commercial policy (Business Owners or Package policy).  If that happens remember you will need a renters policy for your personal liability and contents.