Insurance Policy During Construction Phase

[Shaun Boti]

Hi All,

New investor here. My business partner and I went into contract on a 4 family property in Framingham, MA. We will renovate all 4 units and then rent the units out. I reached out to an insurance broker today and he had indicated that we would need a constructions insurance policy for the renovation phase of the project. Do we really need to do a policy like that? We will have tenants for 3-6 weeks following closing so theoretically we could insure on a traditional policy in the beginning, as it would be much cheaper. Does anyone else have experience with this? 

Thanks,

Shaun