Chicago, IL · Member since 2014 · 49 posts · 7 votes
Making offers on rehab projects in Chicago. Need to get Builders Insurance/ Property insurance lined up. Anyone have recommendations or advice they can give me on this would be greatly appreciated?
New Haven, CT · Member since 2017 · 30 posts · 17 votes
9y
Builders Risk and property insurance are first party coverages. They cover losses to your property as opposed to a liability policy that covers your liability for damage to someone else's property. Most property policies exclude damage during construction, so you need to fill the gap by either a builders risk endorsement, or getting a separate builders risk policy
Investor · Chicago, IL · Member since 2016 · 160 posts · 41 votes
9y
@Alexander Chavez I used one during my flip for builders risk coverage and then property insurance during holding period when property was vacant. I will PM you.
Miramar, FL · Member since 2017 · 7 posts · 2 votes
9y
Great question Alexander, I'm in the same predicament here in South Florida and I'm in need of the same information. Can I also get some enlightenment on this topic as well? Thanks
New Haven, CT · Member since 2017 · 30 posts · 17 votes
9y
Builders Risk and property insurance are first party coverages. They cover losses to your property as opposed to a liability policy that covers your liability for damage to someone else's property. Most property policies exclude damage during construction, so you need to fill the gap by either a builders risk endorsement, or getting a separate builders risk policy
I'm in the San Jose,CA area. What sort of insurance would I need as soon as winning an auction at the trustee sale? Would it be the builders Insurance with regular property insurance? Any recommendations for insurance companies in San Jose , ca area?
I too am an out-of-state investor from Calif., in escrow on our first duplex rental in Indianapolis. We would like to rehab both sides (one will be occupied, while the other we'll be doing cosmetics stuff). Do we need both Rental Dwelling/landlord policy + Builder's risk policy? Sounds horribly expensive, there goes my cap rate (but is that typical and all part of the BRRRR cost?) Thanks I need quotes, any recommendations here would greatly be appreciated!
New Haven, CT · Member since 2017 · 30 posts · 17 votes
8y
@Lynne MacFarlane One of the insurance agents/brokers on here can better respond as to what products are available, and in your area.
But from a coverage perspective, you want to make sure that you have coverage for damage to your property during construction (whether by fire, flood, construction accident, etc). Builders Risk insurance is necessary when your first party coverage excludes damage to your property when your property is undergoing construction, which is the case in many commercial property policies.
If your dwelling/landlord policy covers first party damages even when the damage occurs during renovation/construction, you probably don't need a separate builders' risk policy.
The other component to consider is coverage for Loss of Rents, Loss of Business Income, and Soft Costs resulting from delays in construction that result from a covered loss. Ask whether your landlord policy includes coverage for these losses, and if not, what the increase in premium would be.
In addition to your first-party property insurance and your own liability insurance, make sure your contractors and subcontractors have solid liability insurance, and include you as an additional insured on their liability policies.
I also need a builders risk policy for a four unit i'm trying to purchase in Indianapolis (va renovation loan, lenders requirement). Anyone know of a provider that would cover the property while tenants are still in the units?
I also need a builders risk policy for a four unit i'm trying to purchase in Indianapolis (va renovation loan, lenders requirement). Anyone know of a provider that would cover the property while tenants are still in the units?
Just a heads up to anyone that finds this post. Mary Bogard fro Goosehead insurance was able to find me a policy that satisfied my lender on my VA Renovation Loan that included a builders risk policy that did not require the tenants vacate the property during renovation :)