I haven't flipped a home yet but am in the process of securing financing. Quick question though, what are the insurance requirements for a property that you buy that you're going to flip in 30-90 days? Do you use the same insurer that you have your primary residence with or are there others that cater to this industry? I'm in Texas, I'd love to hear from anyone with experience here. What is the best/cheapest option? Thanks!
I have used State Farm, Allstate, and USAA at various times for our properties. I haven't found deals that are any better than what I can get from the regular carriers; I am in Tennessee.
You might check with Mike Monzingo with Texas Independent Insurance. I met him through the Austin REIC.
Hi Randy! Many of my borrowers use Goosehead Insurance. Jacob Metcalf is really great there. I will send you his contact information.
You'll need a Builders Risk policy for flips, covers them while vacant.
Thanks Nikolas Ferreira!
Foremost covers vacant properties but it is expensive, quick and easy to get a policy.
As @Wayne Brooks said, you'll need a builder's risk policy. On our most recent acquisition in SE Austin, we got a builder's risk policy with a six month term and the following coverage:
I use Jason Matison with Strive Insurance Group for all my LLC insurance needs. He a local guy who lives in Cedar Park and is always very responsive and fast putting together quotes and getting coverage bound. I'll send you his contact info.
If anyone else would like an introduction, let me know!
Check out REI Guard. They offer policies specifically for flipping.
I just got my policy through MetLife and it was around $600 for 6 months.
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