Insurance Policies for Owner-Occupied Dwellings in New Jersey
If you own a multi-family dwelling and you’re one of the occupants, make sure your insurance policy reflects that. This single designation can affect the type of homeowner’s coverage you need as well as the overall cost of your plan. If you’re not sure whether or not owner-occupied dwelling insurance applies to you, get in touch with Muller Insurance. Our experienced agents can help you figure out exactly which policies are right for your situation.
Who Needs Owner-Occupied Dwelling Insurance?
Say you own a residential building with three individual units inside. One of the units is your own primary residence. You decide to rent the other two units out. This is a perfect example of when owner-occupied dwelling insurance is appropriate. Luckily, most owner-occupied plans cost less than tenant-occupied plans, under the assumption that owners will take better care of the building than renters will.
To qualify, you have to show that you live in the unit most of the year. If you’re using the unit as a vacation home or as a second home, a different insurance plan might be required. Similarly, if you currently live in the building but are planning to move and rent out the remaining unit, you’ll have to switch to a tenant-occupied dwelling policy.
What Does the Policy Cover?
Owner-occupied dwelling insurance is designed to protect you and your personal belongings from damage or loss, as well as the entire building. It also comes with personal liability protection, which acts as a safeguard in case someone gets injured on the premises and decides to file a claim.
You should also keep in mind that the policy doesn’t cover the interior of the rental units. It’s up to the tenants to decide if they want to purchase renters insurance for themselves. However, the policy will cover any common areas, like shared entrances, roofing, hallways and elevators.
So what hazards does the policy protect against? Like most homeowner’s insurance, it applies to damage caused by smoke, fire, burglary, theft, vandalism, hail, wind and more. Floods and certain other hazards are exempt, which means you’ll have to take out a separate policy for those as you see fit.
Feel Confident with Your Coverage Plan
No matter what kind of residential building you own, Muller Insurance can help. We sell 3- and 4-family owner-occupied dwelling policies, as well as a variety of other residential insurance policies. Contact us today for a quote.