How to Insure a Triplex You Just Bought: Step‑by‑Step Guide

Jan 2
3 min read

Purchasing a triplex is an exciting investment opportunity, but protecting it with the right insurance is essential from day one. Many new owners make the mistake of assuming homeowners insurance will suffice, or they delay getting proper coverage—both of which can leave their investment and rental income at risk.

This step-by-step guide walks you through how to insure a triplex you just bought, including coverage options, key considerations, and how Wexford Insurance can help ensure your property is fully protected.

Step 1: Understand Your Coverage Needs

Before shopping for insurance, determine the type of coverage your triplex requires:

Property (Dwelling) Insurance: Covers the building structure against fire, storms, vandalism, and other perils.
Liability Insurance: Protects against injuries to tenants, visitors, or contractors.
Loss of Rental Income: Reimburses lost rent if units become uninhabitable.
Optional Endorsements: Flood, earthquake, umbrella liability, or equipment/appliances coverage.

💡 Tip: Replacement cost coverage ensures you can rebuild after a major loss, rather than being limited to the market value.

Step 2: Check Lender Requirements

If your triplex purchase is financed, your lender may have insurance requirements, such as:

Minimum liability limits
Loss-of-income coverage
Named mortgagee endorsement

Meeting these requirements early avoids loan delays or forced coverage at a higher cost.

Step 3: Decide on Policy Type

Depending on whether you live in one unit or rent out all units, choose the right insurance policy:

Owner-Occupied Triplex: Can combine personal property coverage for your unit with landlord coverage for rental units.
Fully Rented Triplex: Requires a landlord or multi-unit property policy to cover all units, liability, and rental income.

💡 Using a standard homeowners policy for rental units is a common mistake that can lead to denied claims.

Step 4: Gather Property Information

Insurance providers will require details about your triplex, including:

Year built, construction type, and roof condition
Square footage and number of units
Security features (alarms, sprinklers, locks)
Any prior claims or property issues

Accurate information ensures proper underwriting and avoids coverage gaps.

Step 5: Compare Quotes from Multiple Providers

Insurance premiums can vary widely, so it’s smart to compare quotes from several carriers. Consider:

Coverage limits and deductibles
Optional endorsements
Discounts for multi-unit or bundled policies

Step 6: Finalize Policy and Add Endorsements

After selecting a provider:

Review policy details carefully
Add optional endorsements if needed for location-specific risks
Ensure the lender is listed as a mortgagee if applicable

💡 Some common endorsements include flood insurance for FEMA flood zones (FEMA Resource) and umbrella liability coverage for extra protection.

Step 7: Maintain Coverage and Update as Needed

Once your triplex is insured:

Keep documentation and receipts for all premiums
Update your policy if property value, occupancy, or risk factors change
Encourage or require tenants to carry renters insurance

Why Wexford Insurance is the Right Choice

Wexford Insurance specializes in triplex and multi-unit rental property insurance. They help new triplex owners:

Choose the correct policy for owner-occupied or fully rented properties
Add necessary endorsements for disaster or liability protection
Meet lender insurance requirements
Avoid coverage gaps that could jeopardize your investment

Final Thoughts

Insuring a triplex you just bought is critical to protecting your investment, rental income, and liability. By following this step-by-step guide and working with a specialized provider like Wexford Insurance, you can secure the right coverage and enjoy peace of mind as a new landlord.