Insurance Coverage Homeowners vs commercial?

Question

The property in question is a mixed-use, with a ground floor commercial unit, and one residential unit upstairs.  The property is owner occupied, with no residential renters, and no commercial renters, what type of property insurance is needed here?  If we plan to rent to a commercial tenant in the future then should we opt for commercial property insurance now, or just homeowner insurance and then change to commercial once that space is ready to be rented?

Tim Swierczek · Answer

I can send you a few agents but BP does not allow contact info in posts so PM me and I will connect you with a couple of options.

Owen Rosen · Answer

Mixed use, vacancy, owner occupied...lots of tricky things when looking for a policy.  Need to speak with a knowledgeable broker. In this case I'd recommend local.

Dylan Otte · Answer

Thanks for the response Tony, are you able to recommend any good providers, we are in Minnesota, if that makes a difference?

Dylan Otte · Answer

@Owen Rosen what would make it challenging, because the space is vacant?

Tony Wilcox · Answer

Most carriers don't want to insure a building as a normal rental home if there is a possibility of commercial use, or even if it's set up to possibly be used as commercial even. You will need to look at a commercial policy for this.

Owen Rosen · Answer

It's highly unlikely you can get anything other than commercial insurance now but even that could be challenging based on how you're using the property and the commercial vacancy