Home owners insurance on a flipped single family home
4 Replies
Danielle Palleschi-Browne
Real Estate Agent from Washington, DC
posted over 3 years ago
Hi BP community! I wanted to reach out and get some advice about what type of home owners insurance you get when flipping a single family home. Been doing some research and coming up blank. Called AllState and State Farm and they will not offer insurance unless the property is occupied. Seems like I have to find an independent brokerage for this type of insurance. Any input or advice would be greatly appreciated.
Thanks!
Jason Hirko
Developer from San Antonio, TX
replied over 3 years ago
@Danielle Palleschi-Browne You really need a builder's risk insurance policy, or at the vary least a vacancy policy. Independent brokers are the easiest way to get one of these. Look into commercial insurance agencies as opposed to home owner insurance agencies.
Jason Bott
Insurance Agent from Milwaukee, WI
replied over 3 years ago
@Danielle Palleschi-Browne there are insurance programs specifically for flipping.
There is a single policy that can cover you during the phases of the flip; vacant/rehab/vacant and rented if you will be holding it, without buying a second or third policy.
I will PM you the info.
Sunny Pyun
Rental Property Investor from Brooklyn, NY
replied over 3 years ago
@Danielle Palleschi-Browne I'm closing on a vacant HUD property soon, and actually got a quote from AllState. One takeaway was they don't offer DP1, and offered me DP3 with a much higher quote.
Judith Sullivan
Real Estate Investor from Hudson, NC
replied over 3 years ago
Foremost insurance, builders risk or "Basic three" policy. Vacant is more expensive than occupied. Just got several quotes from that company.