Insurance on a home I am rehabbing?

[Maher Bateh]

Purchased a home through auction last week and now need to get Insurance on the home while I rehab and list the house. Do I just call any insurance company and get home owners insurance as my own home or???

Please help.

[Jon Holdman]

Not homeowners. That's useless in this situation. Speak with an agent about exactly what you need. Its either "builder's risk" or "empty house". Both of these are very expensive compared to regular homeowners, but they will actually pay out a claim where homeowner's will not.

Most companies will not do these policies. Best to ask other rehabbers in your area for recommendations for an agent that can write these. Next best is to start calling independent agents that write policies for a variety of companies.

Watch out for "fully paid" policies. Sometimes these policies are written that even if you cancel them a week later, you get no refunds. Others will give you a prorated refund when you cancel.