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Steven Catudal
  • Rental Property Investor
  • New Jersey
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Home insurance when house hacking

Steven Catudal
  • Rental Property Investor
  • New Jersey
Posted Feb 20 2024, 05:08

Hi folks,

I am buying a duplex as a primary residence. I will rent out one unit and will live in the other. I was planning to rent out the extra rooms in the unit I am occupying. I am trying to find home insurance but am having a hard time finding one that allows this.

Any advice?

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Kevin Koone
Pro Member
  • Insurance Agent
  • Maumelle, AR
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Kevin Koone
Pro Member
  • Insurance Agent
  • Maumelle, AR
Replied Feb 20 2024, 06:47

Steven,

I'm not in your area so things may be different but we have several carriers here that allow that with no problem.  Safeco, Travelers, Foremost and others.  Have you contacted an independent agent there?  I can refer you to one if needed.

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John Mocker#1 Insurance Contributor
  • Insurance Agent
  • Norwalk, CT
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John Mocker#1 Insurance Contributor
  • Insurance Agent
  • Norwalk, CT
Replied Feb 20 2024, 08:09

Steve,

As Kevin mentioned, there are multiple companies that will write a 2 family dwelling under a Homeowners policy.  Knowing the NJ market, you may be having difficulty due to the proximity to the coast.  Also, many companies require a Lead Safe Certification for multi-family dwellings.  It could also be the age of the systems (roof, electric, plumbing, heating) or other factors.  The number of boarders may also push you out of certain companies due to their guidelines.  

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Steven Catudal
  • Rental Property Investor
  • New Jersey
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16
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Steven Catudal
  • Rental Property Investor
  • New Jersey
Replied Feb 20 2024, 22:39

Very helpful! Thank you!

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Dominic Rosato
  • Real Estate Agent
  • Jersey City, NJ
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Dominic Rosato
  • Real Estate Agent
  • Jersey City, NJ
Replied Feb 21 2024, 08:41

Hi Steve- I used to work in the insurance industry and understand the confusion. However, if you work with insurers based in Northern NJ you will have no trouble finding something that works. 2-4 unit properties are in abundance here and are often being house-hacked. I always recommend State Farm, as their standard homeowner policy will cover your additional rental unit automatically. If you'd like any recommendations for an insurance broker or have questions regarding coverages, feel free to reach out! Best of luck with your purchase.

Dominic Rosato | NJ Realtor with Compass Logo

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Replied Feb 28 2024, 12:27

Hey Steve,

I'm an insurance agent in North Jersey and you'll have a tough time finding coverage.

I can try to find something for you if you'd like.

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Jonathan Soto
  • Rental Property Investor
  • Newark, NJ
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Jonathan Soto
  • Rental Property Investor
  • Newark, NJ
Replied Feb 29 2024, 02:14

i have similar situation in one of my rentals. i can share you my insurance folk to help with your situation