We are buying a duplex that will also be our primary resident. We plan on renting the other unit out. We are doing this for the first time. What type of home insurance do we need? What are the key things we need to be aware of as far as choosing the deductable? Is it much more difficult to deal with smaller local incurance providers compared to the bigger insurance companies like State Farm, Progressive during a claim? Advice is greatly appreiciated.
We are buying a duplex that will also be our primary resident. We plan on renting the other unit out. We are doing this for the first time. What type of home insurance do we need? What are the key things we need to be aware of as far as choosing the deductable? Is it much more difficult to deal with smaller local incurance providers compared to the bigger insurance companies like State Farm, Progressive during a claim? Advice is greatly appreiciated.
Since you will be living in the duplex, you will want to get a homeowners policy, which will cover both the building, as well as your contents. If you weren't living there you could get a dwelling policy that only covers the building (since the contents wouldn't be yours.).
I would go with an independent insurance agent, because they can shop a number of insurance companies for your best rate, whereas if you just went with a "State Farm" or "Geico" type company you will just get their one rate. (you can always check the bigger companies too and shop your rate).
You want to make sure you have Loss of Rent coverage to continue to provide you the rental income from the renter if they had to move out, and always try to get a decent amount of liability coverage for if someone ever sued you (ie. your tenant, etc). Your agent should be able to help you out with all of those coverages. I always ask what the difference is between the $1,000 deductible, and perhaps a $2,500 deductible. You can just decide if the extra premium is worth having that $1,500 covered for you. Buying insurance is pretty simple and straight forward. Once you call an agent they should walk you through it and you will likely feel quite comfortable with the process.
Insurance Agent · Member since 2020 · 177 posts · 76 votes
11mo
Yes I agree with Randall! You can get normal HOI with an endorsement for renting the other side. I would look into increasing your liability to $500,000 at a minimum just in case. Also check with an independent agent to find the best carrier and rate for coverage.