As the homeowner, is insurance cheaper listed as a rental or as a second dwelling?
June 22nd, 2009 | by The Broker |
Sandy R asked:
I have two homes, My son lives in one and I live in the other. Is it cheaper on the one my son lives in to insure it as a second dwelling or as rental property?
I have two homes, My son lives in one and I live in the other. Is it cheaper on the one my son lives in to insure it as a second dwelling or as rental property?
3 Responses to “As the homeowner, is insurance cheaper listed as a rental or as a second dwelling?”
By carpediemmaster on Jun 24, 2009 | Reply
second dwelling although if you lie, it may make your insurance invalid
By mbrcatz on Jun 27, 2009 | Reply
It depends. Do you want the insurance company to actually PAY OUT if it burns down? IF so, you’ll have to list it as a rental, as YOU don’t live in it. Your son, is NOT YOU. You can’t call him, “household member” and voila! it’s owner occupied. It doesn’t WORK that way.
It’s NOT a second dwelling. It’s a rental property. Even if you don’t collect rent on it.
As to which costs more, it’s pretty much a tossup. Usually, the rental doesn’t have any contents coverage, so that makes it cheaper. Usually, the secondary dwelling doesn’t have LIABILITY coverage, so that makes THAT a bit cheaper.
But if the claim is denied because you lied about the occupancy, it’s going to be damned expensive.
By Margueritta K on Jun 30, 2009 | Reply
Sandy R, Home insurance is actually very flexible. I don’t understand all the details of my policy, but my home insurance agent is always helpful. Try calling your agent or a agent in your city. They will be able to help you.