The 7 Biggest Insurance Mistakes Triplex Owners Make And How to Avoid Them
- Jan 2
- 2 min read
Owning a triplex is a rewarding investment, but insurance mistakes can put your property, tenants, and income at risk. Many triplex owners underestimate the complexities of multi-unit insurance, mistakenly assume homeowners insurance is sufficient, or overlook liability coverage. These errors can lead to denied claims, costly repairs, or even lawsuits.
In this guide, we’ll outline the seven most common insurance mistakes triplex owners make and provide strategies to avoid them. With the right coverage and guidance from Wexford Insurance, you can protect your investment and gain peace of mind.
1. Relying on Homeowners Insurance
Mistake: Using a standard homeowners policy to cover a triplex.
Why it’s risky: Homeowners insurance is designed for single-family, owner-occupied properties and often excludes rental activity. Claims related to tenants may be denied.
Solution: Purchase triplex or landlord insurance specifically designed for multi-unit rental properties
2. Skipping Loss-of-Rental-Income Coverage
Mistake: Not including rent loss coverage.
Why it’s risky: If a fire, storm, or other covered event makes units uninhabitable, you could lose months of rental income.
Solution: Add loss-of-income protection to your policy to replace rent during repairs.
3. Underinsuring the Property
Mistake: Buying coverage based on market value rather than replacement cost.
Why it’s risky: In a major loss, rebuilding could cost far more than your coverage, leaving you responsible for the difference.
Solution: Ensure your policy covers replacement cost value (RCV) of the building.
4. Neglecting Liability Coverage
Mistake: Choosing minimal liability limits.
Why it’s risky: Triplexes have multiple tenants and shared spaces, increasing the risk of injury or lawsuits.
Solution: Consider higher liability limits ($300,000–$500,000+) or an umbrella policy for extra protection.
5. Ignoring Optional Endorsements
Mistake: Skipping endorsements like flood, earthquake, or umbrella insurance.
Why it’s risky: Natural disasters or large-scale liability claims could leave your property underinsured.
Solution: Evaluate your location and property risk and add endorsements as needed (FEMA resource).
6. Failing to Require Tenant Insurance
Mistake: Not encouraging or requiring renters insurance.
Why it’s risky: Tenant belongings are not covered by your policy, and liability disputes can arise.
Solution: Require renters insurance for tenants to protect their property and reduce liability claims.
7. Not Working With a Specialized Provider
Mistake: Purchasing insurance from a provider unfamiliar with multi-unit properties.
Why it’s risky: Policies may be improperly structured, leaving gaps in coverage or violating lender requirements.
Solution: Work with a specialized provider like Wexford Insurance, who understands triplex insurance needs and can tailor coverage to protect your property and rental income.
Final Thoughts
Triplex insurance mistakes are common, but they are preventable with proper planning and expert guidance. Avoid relying on homeowners insurance, underinsuring your property, and neglecting liability or endorsements. Partnering with a knowledgeable provider like Wexford Insurance ensures your investment is protected, your tenants are safe, and your rental income is secure.