How to Get Insurance on a Prev. Fire Damaged House

[Nicole Villar]

Hi there BPers! I’ve come across a potential flip property that I’d like to fix up, but it has pretty extensive fire damage. In order for my hard money lender to entertain the deal, I would need proof of homeowners insurance. Does anyone know how to get insurance on a property like this? Any workarounds? Or any companies that will insure something with these damages. 

[Jeremy Goodrich]

@Jeremy VanDelinder is correct.  It's going to be tricky to find a policy but it's possible.  Your agent will be balancing the needs of the lender and what the insurance company is willing to offer.   Your agent needs to find a vacant home policy with renovations (builders risk) coverage.  The Builders risk portion may be most of the coverage.  

Here's what to do:

1. Search Google for an independent agent that specializes in real estate investors.  If you need suggestions LMK.

2. Contact that agency and explain the scenario clearly.  Make sure they have experience in California.

3.  They should be able to give you a preliminary answer to whether they can do it within 48 hours.  Even good agents may simply not have any options.  

4.  If you haven't bought yet, WAIT until you see the price on the insurance policy.  It may dig deep into your profit margin.

Hope this helps,

Jeremy