Insuring a Single Family w/ Mother in-law unit

[Edward Pulido]

Good morning everyone,

I recently acquired a property that has a single family home and a mother-in law apartment in the back. I am having a lot of trouble finding the right insurance for this combo because my insurance broker is stating that I need to have two different policies on the property, one for each building, even though the mother-in law is only 600 sqft. I was able to push through the mortgage using an HO-3 policy because I will be living on the mother-in law for a while until I can find the next property, but now my broker is stating that we need a DP-3 policy which is double of what my original HO-3 quote was. They claim the big issue is that the apartment does not have its own legal address and is not listed in the property appraiser records in my county. This property is in Florida and I welcome any opinions on this subject.