House Hacking - How and when to update Insurance Policy

2 Replies

Hi BP,

I bought a property as my primary residence for the past 2 years. The homeowners insurance is very low at $50/mo. I've recently rented out the property but have not updated my Homeowner's Insurance policy yet. What kind of coverage changes do I need to make? Can I expect my premium to go up or down? Do y'all have any tips or watchouts as I go through this process?

Thank you,
Kurt

@Kurt Stein you should notify your insurance company immediately. If the property is no longer an OO and you have a claim, they may not pay. Your rate will go up. Type of coverage and amount depends on total assets you have. I would get at least 2 quotes on insurance. I've had quotes that have been almost double for basically the exact same policy from different carries.

@Kurt Stein - most insurance policies give you 60 from the time you left the property that they will possibly provide coverage. You definitely need to get a rental property policy so that you will have proper coverage if you have to file a claim. You will want to try your best to get a replacement cost policy, on either Special Form or Broad Form. Also you will want to have $1 million for liability. 

Let me know if you have any questions!

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