We of course have rental dwelling policies on all of them and also hold an umbrella policy now.

Right now appraisers are having a problem with the accessory dwelling units.

Make sure this stuff is in writing and they've signed it:zoning - they're getting a SFH and not a duplex(lack of) permits - nothing for a 2nd kitchen or converted living spacesoccupancy cert (for single dwelling)directly ask the seller/listing agent about the legality of the 2nd unitif your buyer plans on continuing to rent the illegal unit, make sure they are aware of the risks ... this article is geared towards landlords in Oakland, but is worth looking at - find the section for Landlord Liability about half way down.Good luck!

I dwell in NYC and do require assistance in commercial space (several around me with realtors attached) and also my niche would be SFH, duplexs/triplexs and multi unit buildings.

Anyways, I know in this business it's not good to waste time dwelling on things, so I've kept my search going.  

First, (4th time this week, 2nd time today) Multi-family is 5 or more units, 1-4 are single family dwellings.

Depending on your location you may have to buy a property policy (home/dwelling fire) and a separate Wind policy.  

. Ownership of a multifamily property consisting of more than four dwelling units. Joint or total ownership of a property that is held in the name of a corporation or S-corporation, even if the borrower is the ownerof the corporation and the financing is in the name of the corporation or S-corporation. Ownership in a timeshare. Ownership of a vacant (residential) lot. Ownership of a property that is held in the name of an LLC or partnership where the borrower(s) have an individual or combinedownership in the LLC or partnership of less than 25% and the financing is in the name of the LLC or partnership. Ownership of a manufactured home on a leasehold estate not titled as real property (chattel lien on the home).

Other companies that do the umberella without the underlying coverage (auto, home, rental dwellings,..) that may be able to quote are USLI & RLI.  

Who is going to live in the new dwelling is of concern to a bank especially if you are a private person and not a construction or investment company.