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Costly Lesson: I Lost a Property to Fire Because I Didn’t Have Insurance Yet
Years ago, I bought a foreclosed single-family home in Florida for under $40K — cash deal, no financing headaches. It seemed easy: close fast, rehab, flip, done. But I made one big mistake that cost me everything. I didn’t get insurance right away. I figured I’d “get to it later.”
The day after closing, the former owner broke in and set a small fire out of anger. That was bad enough. I started rehabbing the place, fixed everything, got it looking great again… and then he came back and burned the entire house down. Total loss. No insurance. No payout. Just ashes and regret.
The biggest lesson I’ve ever learned as an investor: never, ever close on a property without insurance in place first. Doesn’t matter if it’s a $30K fixer or a million-dollar deal — things happen fast, and once it’s yours, you’re the one holding the bag.
Curious — how many of you get coverage before closing vs. right after? Ever seen something like this happen to another landlord?
- Jorge Vazquez
