Buying a multifamily home? Read this first!

Buying a multifamily home? Read this first!

We’ve had a wave of customers recently who are looking for quotes on multifamily homes.   Mostly where the customer lives in one of the units and rents out the remaining units.  Each customer has asked a variation of the same question. 

Does the insurance cover the tenants too?  And the answer is….no.

While the insurance policy will provide coverage for the building and internal structures like you’d expect an insurance policy would.  There are some coverages that are unique to you, the policy holder. 

For example, if you have personal property coverage on your policy and the building burns down, your personal property is typically covered under your policy.  However, there is no coverage for the tenant’s personal property.

Or what if the tenant invites somebody over the person slips on water in your tenants’ kitchen and falls.  Typically, there is no coverage on your policy for this situation either.

What should I do?

So, if you’re looking to purchase a multifamily home here’s what you need to do.  Require all tenants to secure renters’ insurance to not only cover their own personal property, but to also provide liability coverage to cover situations where their negligence causes bodily injury or property damage.

Want to see what insurance rate look like in your area?  Request a quote online at shopitnow.chrinco.com or give us a call at 321-586-3754 – Chrinco.com – insurance simplified.

Want a home insurance quote from a local agent in Melbourne, FL?  Click Here to get started!

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