Can anyone give me some insight on home owners insurance for owner occupied duplexes or triplexes? How do insurance companies view these types of properties? Is it similar to a single family property? I would love to hear from anyone with experience. Thanks in advance.
In NYC they charge more than a one family but less than a 3 family that you do not live in. It also varies by how much you want covered and what deductible you choose.
Hi Kelly, I would agree with Lelith here. It does depend on a variety of factors including what deductible you choose and what coverages are available for that area. The Program I work with is structured a bit differently from the standard market, so another agent may want to weigh in, but in general there will be a need for more liability coverage in the least as you have a higher risk on that end with more people coming and going from the dwelling.
Owner-occupied locations generally carry the lowest rate available, followed by occupied rentals, properties being renovated and vacant properties. Cost does also increase with the additional liability risk as mentioned above. If are planning on living in one of the units, be sure that you have the appropriate coverage for your personal belongings, but also make sure you're not paying for covering the other tenants' "stuff." They should obtain a renters' policy that both will cover their personal belongings and give you some protection for unintentional damage they cause as a result of a cooking fire or the like.
Hope that helps!
Thanks for all of the input. I did fail to mention that this property is a single family home, with a detached building that has 2 apartments. Wold this have any change to the policy seeing that is not a one building triplex?
Yes it matters. I have a main house Duplex and 3rd Apt above the detached garage. Because the Apt#3 getting insurance has been difficult. The 3 apartments are all on the same legal address, but insurance companies wanted to break them into two policies, BUT they will not write 2 policies for the same address. Catch 22. Esurance said it was no big deal- but 6 weeks after I got the policy cancelled it because of the Apartment #3 being above the garage. I can't be the only one with this situation. Traveler's did write a policy but their service was terrible. Service meaning sending letters without headers or any contact information. They wanted me to fix some things, and said we were good, then did not renew my policy - their mistake. they did not even let me know they did not renew- my bank called me. I am still shopping for someone I can trust. All the risk factors are the same- but the garage having the 3rd unit- is throwing companies off. I am in Nebraska btw.
These local insurance agencies don't have good policies in my opinion, or prices. Check out NREIG. I found them on bigger pockets. They insured my fourplex, gave me a huge liability policy, for less than 40% of what local agents were trying to charge. I even insure one of my SFR through them. Great rates. The only insure rentals, though. No SFR owner occupieds.
Kelly, I have insured a couple homes like this. Each building would have its own policy even though they are on the same lot. The other way would be to get a Comercial policy and list both locations. If you have any more questions I am In White Bear Lake MN I am an insurance agent and a local Real Estate investor.
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