Hi, I need help finding an insurance agent who will issue a 100% replacement cost home insurance policy. I bought this property and then decided to renovate the whole house so it is currently under construction and obviously vacant. Due to this, I can't get a policy issued that meets the lender's requirement. Without this, the mortgage company will not move forward towards closing. Can anyone help with recommendations or my options as to what I need to do so that I can pull the money out of this property?
Are you selling the property or refinancing it?
I am refinancing it to get the cash out.
If you're currently in the middle of a rehab you need a builder's risk policy. Regular landlord insurance may not be available if the house is going to be under construction for more than a few weeks. You're at a bad point in the process to be doing a refi.
Yes, you are correct Jon but I wasn't aware of this requirement by the lender till the very end. Is it possible to get a (DP3)100% replacement cost policy while the property is under construction and vacant? Do insurers provide it? I was informed by my current agent that she has not seen this in her 20 years of being in this business.
Two words: Builders Risk insurance, nothing else.
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