Investment duplexes underwritten as 2 homes?

Question

I have 3 properties in California.  Each one is a duplex or triplex and because the buildings aren't attached my insurance carriers having started writing them as separate properties so I feel like I've been paying double the insurance premiums of what I should.  If there is a garage, that isn't written separately, but the living buildings are.  Is this normal?  My places are small and older and it seems like I'm really over-paying.

John Mocker · Answer

Heidi,

Generally, on a personal insurance form (probably the Dwelling Fire form) most insurance companies will do one property only.  Some can have multiple buildings on the same property on the same policy.  Other companies will not do multiple dwellings on the same policy even if they will include outbuildings like sheds or garages.  If the three buildings are each on a separate lot, they would normally be on separate policies.

The situation is different if the properties are covered with a Commercial form (Business Owners or Package policy).  The commercial forms are designed to include multiple locations.  Generally the rates for the commercial coverage is more but that is not always the case,

Lastly, if the properties have different ownership (ie. separate LLC's) then it would be more difficult to combine them on a personal policy.  Your agent would need to find a carrier that would list all the LLC's on one policy.