Why You May Not Want To Bundle Minneapolis Duplex Insurance

Many duplex, triplex or apartment investors who own multiple properties in the Twin Cities area under the same name or LLC may have all of them insured under the same policy.

This may also be true of homeowners who have a vacation home.

There are advantages to this. Depending on the policy, bundling them together may offer a savings on premiums. And while the idea of having a single, rather than multiple payments is appealing, the biggest benefit of doing this may be having a single deductible.

This can be especially beneficial if all the duplexes are in the same geographic area. For example, if a hail storm occurs, there’s a single rather than multiple deductibles to pay before each property’s roof can be replaced.

Here are the downsides. Last week an insurance agent shared he had a client with multiple properties insured under the same policy.  One of those properties had an event that resulted in a claim. The claim was paid.

But here’s the trouble with that. Even though there was a claim on only one of the properties, each is flagged as having had one. This can result in a higher premium for every duplex in the portfolio, not just the one.

When it came time to renew the policy for the owner above, however, the insurance company notified him they would not be renewing the policy at all.

So now the owner is left to find another blanket policy or individual policies for each property. And of course, they show up as having had a claim, resulting in higher premiums and in many cases, difficulty obtaining coverage at all.

Perhaps the moral of the story is that even though it seems easier, and having a single deductible is attractive, if there’s a claim, the cost may be far greater in time and money.