3+ roommates negate most insurance???

Question

Hi

I am hearing (as an unfortunate result of the Marshall Fire in Colorado) that most insurance coverage is negated if there are more than 2 roommates. Unfortunately, after 24 years of investing, I am finding, to my horror, that this does seem to be the case with most insurance companies.

Who knows of companies that will deal with roommate situations?

Thanks

Laurell Richey · Answer

There are a couple of different situations.

1. owner occupied with 3 roommates- colorado

2. triplex with one unit having 3 roommates- wyoming

3. condo with 3 roommates- colorado

Do you have leads for these?

Thanks,

John Mocker · Answer

Laurell,

Is this an owner occupied or completely rented dwelling and what state is it located.  I checked a few of our carriers and they seem to still be at 4 un-related individuals.  The Insurance carriers have to file their underwriting guidelines with the State Insurance dept in each state they do business.  Those guidelines can vary from state to state.  Also, generally, the insurance carriers will have different products for owner occupied (Homeowners polciies) and tenant occupied (Dwelling Fire policies).  Those policies could have different guidelines.  If the building is over 5 units, most companies will insure it on a commercial insurance form and that could have different guidelines