Home Insurance on my second House Hack

[Megan Herrington]

Hi everyone! I bought a house hack last year and my husband and I are buying another househack this year and wondering what the best insurance setup would be. We have Safeco primary residence insurance right now but when we move out of our first househack maybe we need to change to a different insurance setup up to protect us since we’re not living there anymore. Any thoughts?

[John Mocker]

Megan,

A couple of things on the insurance.  As Jay pointed out, once you move out of your current Residence it will not qualify for a "Homeowners" policy.  What you have now from Safeco is most likely a Homeowners policy.  If Safeco's guidelines are similar to CT the policy will need to be changed.  You can rewrite it to a Dwelling Fire policy (can cover Building, your contents, Loss of rents, Liability, ....) or you can move the coverage to a commercial policy.  I'm not sure if that is what Jay is refering to with the "Rental Property Insurance".   

If the current property is in your name or an LLC with only yourself and spouse as LLC members, the Dwelling Fire should be less expensive. You should also be able to get an Umbrella policy to cover over the Liability coverage of the New home, the Dwelling Fire, your autos, etc.

You may want to shop all the coverage to make sure Safeco offers the best pricing and most complete coverage for all the policies together.