Does Homeowners Insurance Cover Duplexes?

The circumstances surrounding who will be residing in the duplex play a significant role in determining whether or not a duplex is properly insured. When you purchase a duplex and want to reside in it, a homeowners insurance coverage similar to those designed for single-family houses will most likely be sufficient. However, if you intend to rent out one or both of the residences in your house, your homeowners' insurance policy will need to be tailored to your specific needs to keep you fully protected.

Increasing the Number of Tenants

When you decide to rent out one of the residences to renters, you'll need to change the homeowners' insurance policy for your duplex. The first step is to look into the properties' deeds to determine their ownership. Duplexes are occasionally deeded as two separate properties, but at other times they are regarded to be one unit under the law. Be aware of how the property is deeded and that your insurance coverage reflects that knowledge before making any alterations or permitting anyone to move in. Then you'll want to consider increasing your liability insurance coverage. Renting out a property you own to another family increases your duties, and increasing your liability insurance limits can help keep you safe and protected.

Insurance for Duplexes for Renters

Renters' insurance should be obtained by anyone who moves into your duplex, and you should encourage them to do so. If they choose not to, explain to them in detail that your homeowners' insurance may not cover their personal belongings if they do not comply. Many tenants, particularly those who rent out one-half of a duplex, make the unfortunate mistake of assuming that they will be covered by their landlord's homeowners insurance coverage, which is false. If you provide renters insurance, your tenants will be protected from potential hazards such as fire, vandalism, and theft. The personal liability coverage provided by renters insurance can also help pay the costs of an accident if your tenants have visitors over and someone is injured. This saves you from submitting a claim with your homeowners' insurance.