Over the years, owning a duplex has become more common. Purchasing a duplex allows you to own your home and earn a little money on the side by renting out the other half of the home. While you own your home, you are also responsible for a rental property. More than one type of policy is required. It would be best to protect yourself from any future loss, especially when it comes to protecting your own home. It’s important to have the right policy in place that will help you accomplish your goals.
What Type of Policy Should I Have?
The type of insurance you should have if you buy a duplex will depend on what you plan on doing with it. Most people who purchase duplexes live on one side and rent out the other. You may choose to live on both sides or rent out both sides. Many people start out living in the duplex and then transitioning into one of the other two options. The type of policy you choose will be based on your living situation and your plans for the duplex. Any time changes are made, you will have to call your insurance agent and have your policy updated.
What Type of Policy Do I Need?
If you live in the duplex, you will need to purchase homeowners insurance. If you rent out both sides of the duplex, you will need a DP3 policy. This type of policy covers loss of use, damage to the building structure, and various types of liability. If you rent out one side of the duplex, you will need to talk to an agent to find the right type of policy to protect your home, as well as your property. No matter what, you need to protect your financial investment and your family and personal possessions.
What Other Things Should I Cover?
Whether you rent the duplex out or choose to live in it, you will need to protect yourself from different types of loss. Earthquakes, floods, neglect, power failure, and mold are all possible events that could eventually damage your duplex. Many of these events must be covered by specific policies. Your agent will help you determine which types of policies you will need to make sure your duplex is fully covered. Whether you choose a homeowners insurance policy or a DP3 policy, these additional policies are required if you want to protect your investment.
If you’ve purchased a duplex in 2021, buying a home insurance policy in Portland can be confusing. When you have questions and want to learn more, contact our experts at Action Insurance Group. We have the knowledge and experience you can rely on to choose the perfect policy for your situation. Take a few minutes and make the phone call. It’s time to make sure you have the right policy for your duplex.
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