From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1508 topics, 14373 posts — Last Post 04/16/14, 10:44PM

BiggerPockets Exclusive PRO Area

117 topics, 838 posts — Last Post 04/16/14, 09:08PM

New Member Introductions

10858 topics, 85321 posts — Last Post 04/17/14, 12:24AM

Real Estate Success Stories

392 topics, 6105 posts — Last Post 04/16/14, 09:24PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5908 topics, 46603 posts — Last Post 04/16/14, 10:05PM

Renters

641 topics, 5799 posts — Last Post 04/16/14, 10:18PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1608 posts — Last Post 04/16/14, 04:51PM

Do it Yourself

654 topics, 6260 posts — Last Post 04/16/14, 10:43PM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3658 topics, 29327 posts — Last Post 04/16/14, 09:30PM

Real Estate Guru, Book & Course Reviews and Discussions

1129 topics, 11533 posts — Last Post 04/16/14, 08:08PM

Ask About A Real Estate Company

736 topics, 7287 posts — Last Post 04/16/14, 08:11PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5587 topics, 43658 posts — Last Post 04/16/14, 11:17PM

Rehabbing and House Flipping

3324 topics, 30905 posts — Last Post 04/17/14, 12:24AM

Real Estate Development & New Home Construction

551 topics, 4678 posts — Last Post 04/14/14, 01:02AM

Innovative Strategies

699 topics, 5992 posts — Last Post 04/16/14, 04:12PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

864 topics, 6656 posts — Last Post 04/16/14, 11:06PM

Rent to Own a.k.a. Lease Purchase, Lease Options

690 topics, 4864 posts — Last Post 04/16/14, 06:15PM

1031 Exchanges

143 topics, 1052 posts — Last Post 04/16/14, 05:39PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11281 posts — Last Post 04/15/14, 03:20AM

HUD, VA, and Tax Sales

414 topics, 3087 posts — Last Post 04/16/14, 06:02PM

REOs

1212 topics, 10563 posts — Last Post 04/15/14, 01:08PM

Short Sales

1533 topics, 13117 posts — Last Post 04/15/14, 07:10PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7188 topics, 70546 posts — Last Post 04/17/14, 12:17AM

Mobile Homes & Mobile Home Park Investing

636 topics, 5127 posts — Last Post 04/15/14, 09:59PM

Investor Basics

Starting Out

7679 topics, 60298 posts — Last Post 04/16/14, 10:09PM

Investor Psychology

430 topics, 6092 posts — Last Post 04/14/14, 06:53PM

General Real Estate Investing

4711 topics, 37151 posts — Last Post 04/16/14, 09:34PM

Real Estate Investor Marketing

1728 topics, 14076 posts — Last Post 04/16/14, 05:33PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1408 topics, 8977 posts — Last Post 04/16/14, 09:03PM

Multi-Family and Apartment Investing

1102 topics, 9166 posts — Last Post 04/16/14, 11:52PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

638 topics, 4883 posts — Last Post 04/15/14, 01:41PM

Business Basics

Goals, Business Plans & Entities

828 topics, 7527 posts — Last Post 04/16/14, 08:32PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2781 topics, 19979 posts — Last Post 04/16/14, 06:35PM

Property Insurance

309 topics, 2041 posts — Last Post 04/16/14, 02:16PM

Personal Finance Discussion

328 topics, 2714 posts — Last Post 04/16/14, 08:53PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2825 topics, 19666 posts — Last Post 04/16/14, 09:22PM

Creative Real Estate Financing

1207 topics, 8759 posts — Last Post 04/16/14, 03:55PM

Crowdfunding Real Estate

35 topics, 455 posts — Last Post 04/14/14, 02:14PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1205 topics, 7950 posts — Last Post 04/16/14, 08:10PM

Bankers, Lenders, and Mortgage Brokers

440 topics, 1917 posts — Last Post 04/15/14, 07:37AM

Contractors

263 topics, 1663 posts — Last Post 04/16/14, 05:49PM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1983 topics, 11575 posts — Last Post 04/16/14, 10:16PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 426 posts — Last Post 04/16/14, 08:34AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

14985 topics, 53863 posts — Last Post 04/17/14, 12:07AM

Real Estate Events and Happenings

162 topics, 2451 posts — Last Post 04/16/14, 10:37PM

Off-Topic

Off Topic

Off-Topic

2902 topics, 32399 posts — Last Post 04/16/14, 03:07PM

Housing News & Real Estate Market

914 topics, 8348 posts — Last Post 04/16/14, 09:07PM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Rehabbing and House Flipping » Do You Need Home Insurance on a Flip

Do You Need Home Insurance on a Flip

18 posts by 15 users

Signup

Real Estate Investor · Washington D.C.


just wondering.



SFR Investor · Wheat Ridge, Colorado


Not exactly. You need builder's risk or empty house insurance. Discuss what you're doing with your insurance agent to determine exactly which. These policies are much more expensive than homeowners.


Jon Holdman, Flying Phoenix LLC


Real Estate Investor · Central, Massachusetts


Just completed a rehab, the insurance company gave me an investment policy for about what I pay for my owner occupied SFR - with the understanding that it would only be vacant for a few months, not for the full year of the policy.

I was upfront with them and told them I may resell or choose to rent/lease option once rehab was completed - the alternate strategy...



Rehabber · Chandler, Arizona


What insurance companies do you use?


Small_rezamp_buscard_whiteJustin S., Rezamp, LLC
E-Mail: [email protected]
Telephone: 4806780446
Website: http://www.rezamp.com
Comp like the MLS. Real-time feed and instant notifications of deals. Rezamp.com


Real Estate Investor · Phoenix, Arizona


Vacant home insurance will not cover anything in the building. Tools, materials, etc are not covered. I lost thousands of dollars in tools this way once. Id recomend finding a good agent and discussing what you want out of a policy. Make sure to cya if any of your workers get hurt too



Real Estate Investor · Central, Massachusetts


It's a local private agency but the policy was through Phoenix Insurance



Real Estate Investor · Audubon, Pennsylvania


Originally posted by wheelhouse:
What insurance companies do you use?


My answer is in this next link:
http://www.biggerpockets.com/forums/53/topics/41874-the-best-insurance-for-rehabbers

Some other threads with answers from others on this question:

http://www.biggerpockets.com/forums/52/topics/44702-insurance-questions

http://www.biggerpockets.com/forums/52/topics/41842-property-insurance-


Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183
...


Inspector


What's your situation on this property?

Do you own it outright cash? Can you absorb the risk of losing all the cash you have in on it and paying 10-30k for demolition costs?

Are you contracting work out?

Where is it located as we head into the spring hail season(hint)?



Real Estate Investor · Washington D.C.


I get it. Yes I (will) own it outright with cash. Yes Im contracting work. Its not located in any flood zones or where tornadoes or hurricanes are prominent.

My question is, are there any insurance agencies willing to insure a home that will be owned for less than 90 days unoccupied/not primary residence. My other investor friends never insure their properties but I dont think I want to take that chance. I want a piece of mind.



Real Estate Investor · Audubon, Pennsylvania


Originally posted by Lisa Monroe:
...

My question is, are there any insurance agencies willing to insure a home that will be owned for less than 90 days unoccupied/not primary residence. ...


Check the first link under my earlier post for your answer :idea:


Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183
...


SFR Investor · Rancho Cucamonga, California


If you have multiple properties you can get a commercial policy through an insurance and prices go way down.

If it's a flip you must get VACANT insurance (which is a lot more expensive) and many agencies won't touch.

My 10+ policy covers rentals and retail deals, and is very affordable compared to what I used to pay. The other decision you have to make is what to insure the property for? Purchase Price, Purchase Price + Cost, Market Value? Sometimes the agencies come up with market value, which can be a bogus amount in some cases to grab fees.



Real Estate Investor · Washington D.C.


Originally posted by Steve Babiak:
Originally posted by wheelhouse:
What insurance companies do you use?


My answer is in this next link:
http://www.biggerpockets.com/forums/53/topics/41874-the-best-insurance-for-rehabbers

Some other threads with answers from others on this question:

http://www.biggerpockets.com/forums/52/topics/44702-insurance-questions

http://www.biggerpockets.com/forums/52/topics/41842-property-insurance-


Thank you! Helps.....



Landlord · Seattle, Washington


Does your bonding company require insurance? I know when last I checked that took many of these things into account before they were willing to provide the bond.



J M


Do you need vacant insurance on a flip that you intend to reside in while the work is being done?



· California


We have clients that take many different approaches to their insurance needs. Here are the three most common policies.

Get a liability only policy. If you are willing to self insure for the amount of cash you have invested in the house, that is an option. After all, insurance is a transference of risk and you decide what risk you can afford to self insure and what amount would cause a financial hardship. Lawsuits are extremely expensive even if you did nothing wrong and win the case you still pay the lawyer. An attorney is going to charge between $5,000-$20,000 just to get started. Liability insurance will pay legal fees and the judgement up to the amount of insurance.

Get property coverage with a higher deductible. Getting a deductible of $2,500, $5,000, or even $10,000 can drastically reduce your insurance rates and protect you in the event of a catastrophic loss. You self insure for the little things, we pay for the big stuff.

Third. Get a comprehensive policy. Yes they cost more but they cover more. Protect your cash flow so you don't have any interruptions in your business. Insurance isn't all bad, especially when you need it.


No_company_avatar_smallDonald Stevens, Insurance Nerd Agency
Telephone: 888-438-4544
Website: http://www.mylandlordinsurance.com
We write insurance for residential, apartment, and commercial buildings.


Real Estate Investor · Virginia, DC &, Maryland


We always used state farm for our flips as I have many other properties and vehicles insured there. Last week was the first time they declined coverage. They said things had changed. I was given the name of an agent who specialized in coverage such as this. It cost me $538 for 3 months coverage including 1M in liability.



Real Estate Lender · Chicago, Illinois


Originally posted by J M:
Do you need vacant insurance on a flip that you intend to reside in while the work is being done?

So, that means this is your residence. Should you have insurance on your residence? Of course. Should you tell the insurance company it is a flip? Of course not. It is your residence.



Residential Real Estate Agent


A lot of people don't realize how much home insurance is actually needed until it is too late. I wouldn't assume that you don't need it. That is a risky move. You should read through this http://www.biggerpockets.com/forums/67/topics/47212-do-you-need-home-insurance-on-a-flip and make sure that you are doing what is best for you, getting coverage where you need it!





Sign up