Insurance questions from a newbie house hacker

2 Replies

Hello all,

Newbie question here. I am due to close on my first deal within the next 40 days. As such, I have contacted my insurance agent to obtain quotes for my existing home (which will be converted into an SFR) and my future home (a house hack duplex).

My agent has provided me with landlord policy quotes for each structure which seem reasonable, but has recommended that I also carry a "personal renter's policy" while my wife and I live in one side of the duplex.  This seems unusual to carry additional renter's insurance as the homeowner.  In the terms of my lease agreements, I will require my tenants to carry a renter's insurance policy.

In addition to the two structural policy quotes, I also have added 1M of additional liability coverage.  Is the additional "personal rental policy" an ordinary request or is my agent trying to up-sell me redundant coverage?

Thanks in advance,

Andrew

@Andrew Korver this strategy is usually used when a property does not qualify for a home owners policy. In most cases it's a 4 or 5 unit or a property title that is not in your personal name; LLC, trust, partnership, etc.

If you have the duplex titled in your personal name, 99 out of 100 insurance companies will write a duplex as a homeowners policy, avoiding the need to supplement with a renters policy for you and your wife.

so either your agent is new in the business or the insurance carrier has odd underwriting guidelines.

Call a few local companies who write personal lines insurance and just ask how they would structure your policies.  I am pretty sure they will all day 1 home (duplex) and 1 rental, with no renters policy.

@Jason Bott thank you for the info.  Both properties are titled in my personal name.  The carrier is Farmer's Insurance so I would imagine that their policies would not deviate far from the norm.  

I will keep digging.  Thank you for the helpful guidance!