ho3 vs ho6 vs ho6 rented out

[Roy Mitle]

I am thoroughly confused by insurance for rental property.

I brought a townhome. My agent gave me a quote for ho3. then lender said u have to take ho6. then i took ho6 and closed the loan. after renting it out, now the agent is asking me to take ho6 (non-owner occupied). In each of these cases my premium has gone up. which insurance do i really need?

I am paying close to $700 for the townhome. Its more than the SFH that I live in even though the SFH is ~4x my townhome. The agent says this is because there are very few agencies willing to rent out to townhomes. so few competition => premium is high. in addition he says you don't get multi-insurance discounts on second property.