Flipper/Rehabber · Rahway, NJ · Member since 2017 · 137 posts · 123 votes
Hey BP members!
I was wondering if you have to get vacancy insurance for the few months while rehabbing a property if you plan on flipping.
Also if you plan on BRRRR a property, would you get vacancy insurance while you're rehabbing and then cancel that policy and get a different home insurance policy after renters move in?
Investor · Temecula, CA · Member since 2015 · 29 posts · 6 votes
9y
It just depends on the insurance company. There are landlord policies that allow for certain periods of vacancy for repairs. You will just need to confirm it with your insurance agent, the periods are usually 30 or 60 days.
Investor · Temecula, CA · Member since 2015 · 29 posts · 6 votes
9y
It just depends on the insurance company. There are landlord policies that allow for certain periods of vacancy for repairs. You will just need to confirm it with your insurance agent, the periods are usually 30 or 60 days.
Insurance Agent · Richmond, RI · Member since 2015 · 21 posts · 17 votes
9y
Hi Ryan,
I would speak to your current agent about two things:
1. Extending liability from either your primary policy or taking out a separate vacant policy for the liability exposure (kids break in and fall through the unfinished open floor boards and breaks their leg).
2. Take out a builders risk policy for the property exposure, depending on how much renovation you're doing. This way if you leave the space heater plugged in over night and the building burns down, you still have coverage.
Depending on your current insurance policies and carrier though, there's no way to give a definite answer.
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
9y
I am working on a big fixer and have a builder's risk policy. I also have an umbrella for liability. When I was younger and didn't know the difference, I had an insurance agent come by to check on a rental that I was fixing. She noticed some repair work...I can't remember what she could see, perhaps the A/C which was outside...but, anyway it triggered a phone call to me, and she insisted I needed a more rigorous policy. It makes sense, since the overall risk of damage is higher for a vacant house than for an occupied house.
We had a long vacancy while we cleared out my MILs house upon her passing away (about 7 months of clearing and sorting) we also had a policy intended for vacant properties. Once we put the house back in service as a rental, we got an updated landlord type of policy.
Flipper/Rehabber · Rahway, NJ · Member since 2017 · 137 posts · 123 votes
9y
Hey everyone, adding to my insurance question. I recently purchased a house for a quick flip. I have a builders risk insurance policy and a liability insurance policy on the property. Would I also need homeowners insurance? Should be done rehabbing within 2 months and after that nobody will be living there as a plan to sell the property.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
9y
You do not need both policies at the same time. The builders risk policy covers the property during renovation (assuming that you have adequate coverage for the value of the property) then the landlords policy would take over once the renovations are completed