Duplex owners need a specific type of homeowners insurance for the comprehensive protection of their property. Standard homeowner’s insurance may not offer adequate coverage for duplexes. For damage to the duplex by an uncovered peril, you may have to make a sizeable out-of-pocket expense for its repair and replacement.
This blog provides you with all the relevant information that you need to know about homeowner’s insurance for duplexes, functions, and coverages.
What is Duplex Insurance?
A duplex is a single structure consisting of two independent living units that may be built adjacent to each other with a common wall or one unit above the other. The homeowners insurance for duplexes pays for damages caused by covered perils such as:
- Fire and smoke
- Theft and vandalism
- Lightning, wind, and hail
Suppose the damage to the structure is extensive, making it unsafe for you to live there. In that case, loss of use coverage covers the expenses of alternate accommodation and other associated living costs. The policy’s liability coverage covers your third-party injuries and property damage expenses.
- The homeowner’s insurance for duplexes may vary based on its ownership and occupancy aspects, such as:
- You own one or both units. While you live in your unit, the other may be vacant
- You own both units. While one unit is your primary residence, your tenant occupies the other unit
- You own both units but don’t use either as your primary residence and have rented out both the units
Duplex Insurance for Owner-Occupied Properties
If you use both units as your primary residence, you may buy standard homeowner’s insurance where your policy can have either of the following coverages:
- Named peril: covers damages by perils mentioned in the policy
- Open peril: covers all perils except exclusions specifically mentioned
If you live in one unit and rent the other, you can add a rider to your homeowner’s insurance to cover the rented unit.
How to Insure a Rented Duplex?
Buying homeowners insurance for duplexes depends on their occupancy. The coverage types may vary depending on whether you rent both units or live in one and rent the other.
Duplex as a Rental Property
If you invest in a duplex for rental purposes, consider buying landlord’s insurance with a named-peril policy. Homeowners insurance for duplexes is similar to standard homeowner’s insurance except for the following two aspects:
- Tenant’s personal assets may not be covered
- Loss of use is replaced by loss of income
Mixed-Use Duplex
As an owner of the unit where you live, you must have homeowner’s insurance, and for the rented unit, the landlord insurance policy.
Tips for Choosing the Right Duplex Insurance
When searching for the best duplex insurance policy, you have a few options:
- Insurance broker: Engage a specialist broker who can find comprehensive coverage at competitive rates by accessing multiple insurers.
- Captive agent: Consider working with an agent who represents a single insurer, but keep in mind that your options may be limited.
- Shop around: Invest time in comparing quotes from various insurers yourself, even though it can be time-consuming.
Regardless of your chosen approach, ensure you obtain quotes from at least three insurers to secure the most favorable duplex insurance deal.
How to Find the Right Duplex Insurance?
To find the right duplex insurance, take the following steps:
- Assess your coverage needs.
- Research reputable insurance providers.
- Compare policies and coverage options.
- Consider deductibles and liability coverage.
- Check for additional coverage like flood or earthquake insurance.
- Seek professional advice if needed.
- Review and update your policy periodically to ensure it meets your evolving needs.
Safeguard Your Home with Action Insurance Coverage!
Our team at Action Insurance Group has the expertise and experience to guide you toward getting the right home insurance that best suits your budget, unique needs, and lifestyle. For more details on the different types of home insurance coverage, contact us today.
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