Homeowner's insurance on a HOUSE HACK

[Justin O'Malley]

Hey BPites,

I am trying to close on a SFH that I plan to live in the basement of and rent out the main level. It is set up as an ADU so I have a full kitchen downstairs and I will only need to add a laundry hook up in the top unit. Utilities and address will be shared so it is not fully divided into a duplex.

My question is, since the lender needs to see home owners insurance prior to close should I get standard home owners insurance for the whole house -or- get landlord insurance for the whole house and renter's insurance for my living portion?

I have heard that if lenders catch wind of you wanting to rent out a portion of the house then it can muddy the waters with an owner occupied loan. I have asked around and this seems legal to do but the lender doesn't always believe you will truly be living in the property.

So...what kind of insurance should I get and what companies do you like?

Thanks!