Do we need two insurance policies? 2 buildings on 1 lot

Do we need two insurance policies? 2 buildings on 1 lot

Lender · New York, NY · Member since 2016 · 11 posts · 5 votes

My brother and I are purchasing a lot that has two buildings on it as an investment property. The property is in Pawtucket, Rhode Island.

There is only one deed for the lot. 

We are getting a lot of different info from different insurance agents on whether we need 1 or 2 policies.

Obviously, we don't want to pay for two policies, but we don't want to risk being insufficiently covered.

Appreciate and comments/feedback.

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Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
4y

I would call insurance agencies, ask this question, and no matter what their answer, ask them why? Have them explain why or why not. 

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  • Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    4y

    I would call insurance agencies, ask this question, and no matter what their answer, ask them why? Have them explain why or why not. 

  • Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    4y

    Daniel,

    I'm sure you are getting differing answers because companies handle it differently and have filed different guidelines with the state Insurance department.  First, the answer will vary based on whether or not the Insurance policy being proposed is a Commercial policy or a Personal policy.  With a commercial policy, the answer from most companies will be yes, you can put both on the same policy.  The only thing that could present a problem would be if the two buildings had different uses (one residential and one an office building for example) but even then, most commercial policies can handle multiple locations.  I gets trickier with Personal policies.  Most personal policies for a rental building will only be able to handle 1-4 unit buildings (a couple can do up to 5 or 6 but thats rare).  Also, many of the personal policies can handle only one building or one location.  

    I've insured similar situations before in the Personal are but usually it ended up with 2 policies.  One situation was a home with a separate single family on the property.  I was a able to find a company that would cover the Liability for both buildings on the homeowners policy and insured the building and loss of rents for the other building on a separate policy.  In another situation, we had to do a home and a commercial policy for client that had his business in a detached barn building.  In that case we insured both policies with the same insurance carrier so that, if there was a claim, there would not be two different companies arguing over who needed to pay the claim.  There are probably other combinations to handle your situation but without know what the two buildings are being used for and who the company insuring it I would just be guessing.

  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    4y

    @Daniel Francoeur a single commercial policy will be the proper fit for this.  

    Only thing that may get in your way is if your financing requires a Homeowners policy, then you would need to get 2 separate policies.

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