Dwelling Insurance with garage rented seperately for 4 plex

[Sunny S.]

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 ?

[Andrew Bish]

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.