Hi folks! My property will have 5 units total once we finish converting our garage to an ADU -- we just finished building a 2-unit ADU structure that's all new construction, and the property already had an existing duplex. All units will be rented out except one of the original duplex units, which I live in. It's a bit of an unusual setup, and I'm trying to figure out what kind of insurance we can/should get and which company might be good. Any thoughts?
Congratulations on the conversion, sounds like a very exiting property to be moving forward with.
I have to give the obligatory, find/interview a few local brokers to find one versed in the local insurance market and understands/works to understand the needs of investors.
A single policy might work, if properly endorsed and disclosed, a standard homeowners policy could possibly work. I have seen those on a house-hacked owner-occupied 2 or 3 flat. However, some landlord polices allow for the dwelling to be occupied by the owner and tenant. I believe that a landlord policy that allows owner-occupied and tenants would be cheaper than endorsing the other way around, however, a local broker would have a better idea. I would say try Steadily, except I think they max out at 4 units on a site.
Having 5 units may require a commercial landlord policy for competitive pricing. If that is case, you would need at least 2 policies. The commercial landlord policy would be concerned with the site and property, while you still need a policy to protect your possessions and personal liability, this is exactly what a "renters" or "contents only" policy covers.
Congratulations on the conversion, sounds like a very exiting property to be moving forward with.
I have to give the obligatory, find/interview a few local brokers to find one versed in the local insurance market and understands/works to understand the needs of investors.
A single policy might work, if properly endorsed and disclosed, a standard homeowners policy could possibly work. I have seen those on a house-hacked owner-occupied 2 or 3 flat. However, some landlord polices allow for the dwelling to be occupied by the owner and tenant. I believe that a landlord policy that allows owner-occupied and tenants would be cheaper than endorsing the other way around, however, a local broker would have a better idea. I would say try Steadily, except I think they max out at 4 units on a site.
Having 5 units may require a commercial landlord policy for competitive pricing. If that is case, you would need at least 2 policies. The commercial landlord policy would be concerned with the site and property, while you still need a policy to protect your possessions and personal liability, this is exactly what a "renters" or "contents only" policy covers.