insurance for 5th property

[Samantha Soto]

We have a 4plex under contract right now. We will be using an FHA loan and moving into one of the units. The property is actually two duplexes on the same lot. I am being told by insurance companies that we will need two separate policies for each building. Is that accurate?

We have two SFR rentals in Alabama right now, one duplex rental here in Indy, and we will soon be renting out our primary residence, which will be our 4th rental property. The new fourplex will put us at 5 landlord policies, and many insurance companies are telling me they will not ensure over 4.

What's the trick here?  Time for a different type of insurance?  Commercial? 

[Casey J Burkhead]

Hi @Samantha Soto,

You would only put the two buildings on two separate policies if they are deeded separately.  If both buildings are on the same deed, they can be insured on the same policy.

It is common for most standard carriers to not insure more than 4 rental properties or more than 8 units total.  There are some that will go beyond that though.  Safeco and Liberty Mutual come to mind.

- Casey