The Difference in Duplex Insurance When It’s Occupied By the Owner

You’ve just found a cozy duplex to call your own. Now it’s time to protect your investment. Will you be renting it out or is it just for you and your family? When you own a duplex, the type of insurance policy you’ll need depends on how the property is used. Here, we’ll discuss different types of coverage as well as any add-ons you might want to bundle into your policy.

Insuring an Owner-Occupied Duplex

Your insurance policy will provide extensive coverage for the duplex as a whole, including:

  • Common areas and shared spaces, like entryways, hallways, and the roof
  • The duplex’s overall physical structures
  • Damage due to snow, hail, and storms
  • Theft and vandalism
  • The structures inside tenant spaces, such as floors, ceilings, and more

An owner-occupied dwelling policy will also cover your personal belongings, just like a homeowner’s policy. However, this coverage does not extend to your tenant’s personal property, and they will need renters’ insurance to cover the contents of their unit.

If you move to a new home in the future but wish to maintain the duplex as a rental property, look into tenant-occupied dwelling insurance. This option is for buildings that are occupied by your tenants only and typically offers no coverage for personal items.

Customize Your Coverage

When it comes to insurance, it’s important to consider all the possibilities – and liabilities – before deciding on a policy. An owner-occupied dwelling policy offers comprehensive protection, but you may still be liable in specific circumstances, from flooding to unexpected lawsuits. To create a wider security net for your finances and assets, consider the following additional policies:

Earthquake and Flood Coverage

If your property is in a zone commonly affected by natural disasters, a little extra insurance can go a long way. Consider bundling earthquake or flood insurance with your policy if your duplex is in a high-risk area.

Umbrella Insurance

Owning a rental property is not without the risk of potential lawsuits for mismanagement. Adding umbrella liability insurance to your coverage helps protect you against any legal fees and court-assigned judgments that may incur as a result.

Collections Insurance

Do you have a treasured assortment of heirloom jewelry? A carefully curated art collection? These high-value items are typically not protected by your basic policy. Adding a collections policy helps ensure your most valuable possessions are protected against theft and damage, from antiques to collectibles and beyond. 

Again, these policies protect the property owner only. Coverage varies from state to state and with the needs of the insured. Professional insurance agents can help you decide which policies best suit your situation.

Find the Best Policy for Your Owner-Occupied Rental Duplex

To find the policy that best suits your living arrangements, consult an agent from Muller Insurance. Proudly serving clients in New Jersey, New York, Connecticut, Pennsylvania, Nevada and other states, we can help you find the insurance that best suits your needs. For more information, contact an agent or request a free quote online.

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