Owner Occupied 2 Family- What Insurance Do I Need?

Owner Occupied 2 Family- What Insurance Do I Need?

Charlestown, MA · Member since 2015 · 2 posts · 3 votes

Hi all,

This may have been addressed somewhere already, so I apologize if I missed it. I'm new to the home ownership game. I recently bought a duplex- I occupy the right unit and I'm looking for a long-term renter on the left unit for the fall. My question relates to insurance. I have homeowners insurance on the entire home, but I'm learning more about rental property/landlord insurance and I'm wondering if I need a combination of both.

The articles I've read online talk about having one or the other, but since I occupy one of the units I wonder if I need both. Should I have homeowners insurance only on my unit and have rental property insurance just on the left? Should I have both kinds on both units or is that redundant?

Thank you in advance,

Tim

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Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
10y

@Tim Harvey You should be able to have the policy written as an owner occupied 2 unit. This would be the only policy you would need except for a personal lines umbrella. If ever you move out of that duplex and make it a rental, then you would switch the coverage on it to a landlord policy.

I would require the tenant to have renters insurance with a 500K min. liability coverage. You need to be listed as an additional insured and a certificate holder. This will protect you on their policy just as it protects them. It will also let you know if the policy were to terminate for any reason.

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  • Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    10y

    Welcome to the site first/foremost. I would make sure that you have some type of a commercial liability or umbrella policy in place. I would also ask that your tenant carries renters insurance. Better safe vs sorry. 

  • Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    10y

    @Tim Harvey You should be able to have the policy written as an owner occupied 2 unit. This would be the only policy you would need except for a personal lines umbrella. If ever you move out of that duplex and make it a rental, then you would switch the coverage on it to a landlord policy.

    I would require the tenant to have renters insurance with a 500K min. liability coverage. You need to be listed as an additional insured and a certificate holder. This will protect you on their policy just as it protects them. It will also let you know if the policy were to terminate for any reason.

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    10y

    On my 2-fam primary, I just have an owner-occ 2 unit as @Kevin Romines mentions.

    Great advice on requiring renters insurance by Kevin and @Ryan Dossey

    Kevin - I only knew about content coverage for renters.  Thanks for the heads up that liability is available.  Is it pretty expensive for them?  Thanks!

  • Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    10y

    Its typically $8-24 a month depending on how much contents coverage they have? It also gets them a couple dollar discount off their auto coverage when they bundle?

  • Charlestown, MA · Member since 2015 · 2 posts · 3 votes
    10y

    Thank you all for the comments and advice, it's much appreciated!

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