Duplexes have gained quite some popularity in the modern Canadian housing markets, and the future seems to await a boom.
However, when it comes to security, getting insurance for duplex buildings can get a bit complex.
There’s no singular duplex insurance to rely on. The terms and conditions, cost of insurance, and premiums will vary and depend on how you use the duplex. Here’s a guide for you to know the benefits of getting duplex insurance and choosing the right one for yourself.
Meanwhile, if you are looking to move out of your duplex, and need to shop for home insurance in British Columbia, the Surex is your first and only choice.
How does home insurance work for a duplex?
A duplex home insurance policy depends on the type of living arrangements that you’ve set up — you can buy one part of the duplex or both. However, the two parts of a duplex are separated by one common wall. There’s no one-size-fits-all when it comes to duplexes, unlike homes. However, the amount of the premiums and the type of coverage you’ll need varies.
Commonly there are three types of living arrangements in a duplex.
You are the owner and the sole occupant of the duplex
If you are the sole owner and occupant of the duplex, you would need HO3 insurance. It is standard homeowner’s insurance and would cover most damages and repairs to your duplex. Whether it’s damage to your property or your belongings, you’ll get coverage for everything.
However, most policies won’t give you coverage for floods and earthquakes. You can purchase separate endorsements (also known as add-ons) if you want to get these extra types of coverage.
You live in the duplex and rent the other side as well
If you have a duplex, you can rent a part of it and stay in the other. Renting out the properties makes sense because the housing prices have been increasing incessantly. Here, you’ll have two choices – landlord and HO3 insurance. Though the priority is HO3 insurance, the premiums are 20% to 30% higher. In such a situation, you can avail of landlord insurance.
You do not live in the duplex and have rented both sides
If you want to rent out both sides of your duplex, you need to have landlord insurance. It provides coverage for damage to the building structure, loss of use, and liability. Besides, you also get the opportunity to add coverage through endorsements.
Based on the living arrangements you have for your duplex, your insurance cost varies. Besides, you’ll also get to know whether you need to add any additional policies to your coverage.
Benefits of getting insurance for duplex buildings
You are probably well aware of the benefits of getting insurance for a home, but for a duplex, the picture is certainly a lot different. Check out the benefits of getting duplex insurance. They are:
Avail more coverage
If you rent out one part and live in the other part of a duplex simultaneously, you can choose multiple insurance coverage options. While one part will help you cover liabilities and physical damages, you can avail damages and repairs related to the other part of the property.
Easy to obtain renter’s insurance
Every insurance agent verifies the renter’s property before insuring it. When it comes to a duplex, it seems no less organized than a perfectly planned home – from expert plumbing to well-renovated structures. So, getting a renter’s duplex insurance wouldn’t be much of a hassle.
Better coverage scopes
Compared to an apartment or a house, a duplex is considered more secure because they are located within a community of townhouses and villas. The security provided in such locations is strong enough to keep the casualties in check. Thus, the insurance coverage you get on duplexes is more than an apartment or a house. Besides, the premiums can also be low considering more security.
More chances of availing additional cover
As the priority insurance cost for a duplex is considerably less, you can shop around and look for additional covers you can make use of. You can go ahead and insure your valued possessions or maybe take extra fire coverage to secure your duplex better.
Additional policy coverages to consider
There are multiple benefits to avail insurance policies for a duplex, but the adversities are certainly no less in number. You, as the owner, need to be always on your toes whether you are living in it or renting it out. Here are some additional policy coverages you can consider for your duplex.
Homeowners insurance
It is always recommended to avail of homeowners insurance besides the additional covers you are taking for your duplex. It considers the whole property under the owner’s name, whether it’s rented or not.
Landlord insurance
If you are considering renting out one part or both parts of your duplex, landlord insurance is a must-have for you. No matter how great a landlord you are, even one disagreement with the renter is enough for them to file a lawsuit against you. With landlord’s insurance, you and your property will be secured.
Earthquake and flood coverage
As much as the types of insurance listed above seem important, natural threats like earthquakes and floods cannot be predicted. It can be beneficial to get additional coverage against such worst-case scenarios.
Collections insurance
You probably have other prized possessions inside your home that need to be insured. It may be anything from valued jewelry to a well-known art piece, which any basic policy will not cover. However, collections insurance will help protect and secure these items against threats like theft or burglaries.
Conclusion
Now that you are sound about the benefits of getting insurance for a duplex, there’s no way you’ll let go of it. Considering that duplexes involve considerable investment, it only makes sense to secure it with robust insurance in place.
If you are still confused about which insurance to choose, talking to an expert, like an insurance broker, will likely help. They will assess the maximum loss possible in unforeseen circumstances and suggest adequate coverage accordingly.
