Homeowners Insurance For Duplex

Determining the Best Homeowners Insurance for a Duplex

Homeowners Insurance for a duplex is somewhat different than a normal homeowners insurance policy. Many people purchase a duplex as an investment without thinking much about the type of insurance coverage needed. Most homes are purchased for a homeowner to live in. Renting out both sides of the duplex as an investment, and the type of insurance needed, is usually obvious to the owner that they will need a different type of coverage for their policy.
The confusion occurs when the owner decides to live in one of the units and rent the other. Do they need a regular policy or something special? The decision will make a difference in how well protected you are going forward. Finding out you are not adequately covered with a normal homeowners policy could be detrimental to your investment. Knowing what type of policy you need, will protect your investment.

Determining a Duplex's Classification

The first step in determining what type of insurance you will need is based on how your home title is structured. Many communities consider the entire property as one home while others will think of both units separately. Many people have discovered this issue and how it affects them much too late. They found the policy only covered one unit.
If you purchase insurance to cover the property and find out only one of the units is covered, you could face financial ruin. Speak to your tax assessorÕs office to determine how each unit is classified and make sure you are clear with your insurance company upfront when you receive your duplex insurance quote. These steps will guarantee you will receive the proper coverage for your duplex and protect you financially if a disaster occurs.
homeowners insurance for duplex

Proper Duplex Home Insurance

One thing you must understand is, homeowner's insurance for a duplex is more complicated than a simple homeowners policy. Several factors contribute to what type of policy is needed. If you plan on living in one of the units a regular homeowners policy will suffice for that particular unit, but if the other is rented out, your policy needs to change. The type of coverage you need will be determined by the insurance company you choose, and the risks involved for the insurance company.
Some risks that will play a role are that some insurance companies view renters as a higher risk. When negotiating a policy with your insurance supplier, you will find coverage for a rental unit different from your regular policy. Without having extra coverage on your policy, you may find certain claims denied.

duplex insurance quote

Requiring Renters Insurance

Separate from any coverage you carry with your homeowner's insurance for a duplex, you should also think about requiring any renters to have their own. Many renters expect that the owner's insurance will cover their loss but this is not true. Most property of renters, that is lost during a disaster, is the responsibility of the renter. It is important that any tenets in a rented duplex understand this part of the agreement and have their own insurance.
More importantly, anyone who needs medical attention due to an injury on your rental property should be the responsibility of the renter. In the past, however, owners have found they have been sued by those injured on the property they own. By requiring your renter to seek out and purchase renters insurance while living in your duplex you can reduce your liability.