How do YOU insure your flips?

Question

I am closing on my first rehab/flip next week and was planning on just calling the same insurance agent/Co. I use for my own home, cars, etc.  Is this normal?  Should I be looking for an Insurance Co. that specializes in investment property?  What do you do?

J Scott · Answer

It took several months, but the claim eventually got paid...

It was a bit of a weird situation -- about a week after he bought the house, a tree fell on it.  He was likely going to knock the house down anyway, so any money he got was pretty much a bonus; but had he not planned to knock the house down, what he got likely wouldn't have covered the damage.

I'll get more details from him and post those, as I never got all the details...

John Moore · Answer

Shop around you will find an insurance company that will provide builders risk.

J Scott · Answer

We either self-insure (take the risk over many projects) or get a builder's risk policy.  Most large insurance companies won't do builder's risk, so you'll want to find a company that's more niche in this space.

I use Affinity when I get insurance, though an investor friend of mine recently had a claim with them and wasn't thrilled with the process/service/timeline on the payout.

Ben R. · Answer

We always bought a builders risk policy, not available at your local insurance store. Not sure what others are doing these days....

Mike B. · Answer

Just wrapped up a policy with AllRisk. Pretty quick and easy.

James Vermillion · Answer

J  Scott, I use Affinity too...did everything eventually work out with the claim?  Do you know if your friend will be using them again?

Andrew S. · Answer

I'm interested in this question too although so far, I have had very good experience with using my primary residence/car company, both for insuring investment properties and umbrella liability.  That said, always on the lookout to optimize rates!

How do YOU insure your flips?

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