House Hacking Homeowners Insurance

[Zoe Floyd]

Looking to House hack half my primary home, yet insurance broker said policy would drop and they wouldn’t be able to find a provider that would cover rental to two family parties in same property. Has anyone run into this? Any recommendations?

[John Mocker]

Zoeimy

Unfortunately, an umbrella is not the solution.  An Umbrella policy will provide Liability coverage when the limits of the underlying policies (Home, Auto, Dwelling/Fire,...) are exhausted in a claims.  The policy will not provide coverage in place of a missing homeowners policy. 

If the part you are renting is a separate building (ie. garage apartment) there are endorsements that can be added to cover that situation.  If you are renting a room in the house my advise is to seek out multiple Agents, Independent (multiple) carriers and Captive (only write one carrier like Nationwide) and see if any of them can cover that situation.  Make sure you review the application carefully to make sure that is spelled out.