Dwelling Insurance with garage rented seperately for 4 plex

Rental Property Investor · Bentonville, AR · Member since 2020 · 86 posts · 15 votes

Hi, How do you insure a 4 plex if you seperately rent a garage for storing personal items without going to commercial insurance which is expensive compaired to the worth of the 4 plex. I would like to know how other investors handle this or any insurance companies who can still give endorsement for garage renting with dwelling ?

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Andrew Bish

Insurance Agent · Chicago · Member since 2025 · 46 posts · 38 votes

5mo

Who rents the garage for storage? Depending on who rents it, the structure could maybe be covered under the other structures or Coverage B limit. Dig into your policy, yes the 40-100 page document, in the property coverage section. I am seeing this more and more in Chicago and the opening of the ADU program.

Many of my carriers will not cover "Other structures rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage." This is ripped straight from an Illinois Travelers policy shell.

If coverage is exluded, you may need to explore a seperate policy for the garage.

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Tony Wilcox
Insurance Agent · Member since 2020 · 177 posts · 76 votes
5mo
There are carriers that will write this as 4 units and you put on the quote the garage has living space. Auto-Owners is one that is fine doing it this way.
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- Owen RosenBusiness Member
  Professional · Clinton Township, MI · Member since 2015 · 682 posts · 259 votes
  5mo
  Quote from @Tony Wilcox:
  
  There are carriers that will write this as 4 units and you put on the quote the garage has living space. Auto-Owners is one that is fine doing it this way.
  
  There should be options to insure as 5 units that aren't drastically more expensive compared to 4 units OR you may need separate policies.
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- Owen RosenBusiness Member
  Professional · Clinton Township, MI · Member since 2015 · 682 posts · 259 votes
  5mo
  Quote from @Owen Rosen:
  
  Quote from @Tony Wilcox:
  
  There are carriers that will write this as 4 units and you put on the quote the garage has living space. Auto-Owners is one that is fine doing it this way.
  
  There should be options to insure as 5 units that aren't drastically more expensive compared to 4 units OR you may need separate policies.
  
  Amending this as I read the original post as the garage being separate living space but now I see that it's for storage. Would need more information to provide an answer.
  Royal Oath Insurance Group4.9203 Reviews
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
5mo
Is the garage a legally permitted conversion? If it is not legal' living space' then that may be a problem....
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Andrew Bish
Insurance Agent · Chicago · Member since 2025 · 46 posts · 38 votes
5mo
Who rents the garage for storage? Depending on who rents it, the structure could maybe be covered under the other structures or Coverage B limit. Dig into your policy, yes the 40-100 page document, in the property coverage section. I am seeing this more and more in Chicago and the opening of the ADU program.
Many of my carriers will not cover "Other structures rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage." This is ripped straight from an Illinois Travelers policy shell.
If coverage is exluded, you may need to explore a seperate policy for the garage.
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