If you own a building with multiple private units or are seeking to rent out separate living spaces to potential tenants, you need to find out which form of insurance protects you the most. Muller Insurance offers multiple types of insurance that cover your building and certain liabilities that come with renting units to non-family members. Here, we describe the important things to know about multi-unit insurance policies and the coverage they afford.
What Is a Multi-Unit Dwelling?
A multi-unit dwelling is any structure or building that contains more than one private living space. Whether these are connected side-to-side by walls or stacked on top of each other, these are both multi-unit dwellings. Here are a few examples of what’s considered to be a multi-unit dwelling:
- Duplex
- Condo complex
- Small apartment
- Townhome
Each unit must have its own:
- Bathroom
- Kitchen
- Private entrance to the residence
- Separate utility meter
If the building you own or live in meets these requirements or can be renovated to meet them, your building may qualify as a multi-unit dwelling.
What Types of Insurance Cover Multi-Unit Dwellings?
Muller Insurance offers several policies for multi-unit dwellings, and with some providing the coverage necessary for owning a multifamily home. These include:
Tenant-Occupied Dwelling
Tenant-occupied dwelling insurance is designed to cover a building that houses tenants but is not your primary residence. This form of insurance covers:
- Property insurance
- Loss of rent
- General liability
This is the most common form of this policy, but you can add additional protection, like the protection of your tenant’s property. This, along with their renter’s insurance, will cover the cost of replacing their damaged property.
Owner-Occupied Dwelling
This form of insurance aims to afford the protection of homeowners insurance along with those included in tenant-occupied dwelling insurance. Our coverage covers the following:
- Common areas used by tenants
- Damage from extreme weather
- Damage from fire and smoke
- Structures that provide privacy to each tenant
- The structure of the building
- Theft and vandalism
If your primary residence is the same building your tenants reside in, you qualify for owner-occupied dwelling insurance.
Consider Additional Coverage Policies
Beyond our basic policies, there are several additional protections you can add on if you’re located in an area that is prone to certain risks. At Muller Insurance, we offer the following supplemental coverage:
- Earthquake insurance: Earthquakes are not common natural events, which is why they’re rarely covered under typical insurance policies. If you live in a region that’s prone to earthquakes, it’s important to add this to your existing policy.
- Flood insurance: If the building you own is located near a large body of water, or has been known to flood during a wet season, flood insurance is a must-have. Because most homes are built away from bodies of water this is not included in a basic insurance package.
- Umbrella insurance: Even the most cautious of landlords face legal action against claims of mismanagement. If any of these claims are brought before a court, umbrella insurance covers the legal fees that ensue.
- Workers’ compensation: While this is a required policy in many states, it’s not often included in the initial policy. This is especially important for those who employ maintenance workers. This provides additional assistance for those injured on the job.
Muller Insurance provides these policies and more to residents of NJ, NY, CT, PA, NV, and other states. Contact us today and discover which multi-unit dwelling insurance policy is best for you.
