Can I get rentals or duplexes covered with American Modern?

I recently bought a duplex as my first investment property, and I’m trying to figure out insurance. I don’t live in either unit (it’s fully rented out), and my agent mentioned American Modern as an option.

I always thought homeowners insurance was just for primary residences, so now I’m a little confused. Can a company like American Modern actually cover rentals or multi-unit properties like this?

Yes, American Modern can be a good option for rental properties and duplexes, especially when the situation doesn’t fit a standard homeowners policy.

American Modern offers landlord-style coverage, which is designed for properties you don’t live in. If you own a duplex and rent out both units, that’s typically not eligible for a traditional homeowners policy, but it can be covered under a rental or dwelling policy.

This type of policy focuses on protecting the structure itself, along with liability coverage in case someone is injured on the property.

Here’s how it’s a little different from a standard homeowners policy:

• It doesn’t cover your personal belongings the same way (since you don’t live there)
• It may include loss of rental income if the property becomes unlivable after a covered loss
• Coverage is built around the idea that the home is an investment property, not your residence

Since you’re newer to owning rental property, it’s a good idea to ask your agent:

• What type of policy this would be, when you aren't living there yourself
• What’s covered if a tenant causes damage
• Whether lost rental income is included

American Modern can be a good option for an investment property, but it’s important to make sure the policy matches how the property is actually being used. If you later decide to furnish one unit and rent it out short term, that can change your insurance needs and add a bit more complexity, so it’s a good idea to ask your agent about that ahead of time. And if American Modern doesn’t end up being the best fit, that’s okay too. Comparing a few quotes and coverage options can help you find the policy that works best for your situation.