Duplex: 1 structure, 2 deeds. Need 2 insurance policies?

Question

Buying a side-by-side duplex in Kansas. It is all one physical structure, but is 2 deeds. One unit's front door faces east, while the other front door faces south, so the two units have different street addresses. Given that it is all one physical structure (but there are two deeds), can I do just one landlord policy or do I need two? Getting very mixed answers from different insurance agents.

John Mocker · Answer

Megan,

I can understand your confusion.  There are indeed different answers to the question.  First, it depends whether the policy(ies) are in the Personal Lines area.  Dwelling Fire Policies (aka Landlord policies) with different companies may have different underwriting.  Some companies may be able to write multiple locations on the same policy while others need to do separate policies.  One caution on separate policies, write them both with the same company.  You do not want two companies fighting over how much each of their share is.

If you insure it under a Commercial form, there is generally no problem with both locations being on the same policy.

Bill B. · Answer

If they can be sold separately (which they can if they have sepearete PIDs.) then they each need a separate policy. Many people own 1/2 of a duplex (me included) and obviously me and the other owner each need policies. If I bought their property I would still need two policies.

Caroline Gerardo · Answer

Assessor taxes as two separate numbers? When owner did this they could have set up like two condos with agreements about roof, zero lot line, and shared walls. It that wasn't completed you might want to look into recording and organizing this.

There would be a master policy that covers the roof, exterior, and any shared amenities. Can't tell if they share meters...

Is the land divided in any way on title? Who does the landscaping?

Then a contents or like a HO6 policy. Your insurance agent should guide you.

Rhett Tullis · Answer

Most insurance companies like us want to make all they can so of course they will want to set up two policies.  You may find one carrier that will combine them but not likely.  Pretty common here in okc for them to split a duplex like this on two deeds.  Most builders are hoping to sell to owner occupants and so that opens up more options on the sale side.  Older duplexes where I am from are often on one but new tend to be two.

Will Fraser · Answer

Mixed answers because this is a truly odd situation.

It shouldn't be on two deeds IMO.  This isn't new enough of a structure to likely be in an area that is zoned in such a way to preclude duplexes, and in my experience just because a duplex has different street facing addresses doesn't usually mean that the deed needs to be for two half homes.  However, if they are truly two independent properties (like zoned Half-Duplex) then you could have a significantly higher property value than if they are truly one duplex that the title company messed up the deed on.

Back to the insurance debacle . . . you'll likely be well served by a master policy for the property and then a rider that specifies the other address.  Any savvy commercial agent should be able to work up the right solution, and if you need a recommendation then I'd give Chad Endres a call at Thrive Insurance in Oklahoma City.

Duplex: 1 structure, 2 deeds. Need 2 insurance policies?

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