Is home insurance needed in a Flip? HELPPPPP

6 Replies

Hi All,

I want to know if I need home insurance in my investment property. We are going to initiate the rehab portion. Must of the work will be performed by husband. However, there are areas that needs permits and we have hired a contractor who will be completing those areas along with the individuals he hires. I want to make sure that I am cover, in the event that something happen. Does he needs to provide insurance for his employees? if he subcontract, does the outsite company need insurance? How do I verify that the insurance of the company covers the employees on site?  I know I have a lot of questions. 

Thank you all,

Luz P.

Yes, you certainly need insurance, usually a Builders Risk policy.
The only way to verify insurances for contractors is by getting a Certificate Of Insurance (Accord firm), Directly from the insurance agent, Not a copy provided by the Contractor.

@Wayne Brooks is correct, you need to get a COI from the insurance company of anyone you hire. If anyone balks, then assume they arent insured as this request is extremely easy. 

Regarding your husband and the house, I always get a vacant home policy and a builders risk policy on my rehabs. You never know what could happen and it is fairly cheap to get for 6 months to 1 year. I have an agent I call, we run down the list of questions and I have coverage right then and there. It's prorated so the day I don't need it anymore I cancel and get a check back.