vacant property insurance Florida

4 Replies

Do you insure a SFH for vacant insurance while flipping it? If so what insurance agency do you use and what is the price?

I have a house around 200k that I am flipping right now and trying to understand what is usually done insurance wise. I have been told by a few people that most flippers don't insure their houses and take the chance.

Thanks!

I've had property vacant for nearly a year twice, through my own fault.  (For example, after Mom died, my brother and I had trouble having an estate sale and parting with our childhood home.)  In both cases, it all worked out fine.  However, I do know of someone who found out local kids had broken in and were repeatedly having parties there, so there is certainly a risk.  None of these were flip situations, but still, I, personally would probably just wing it.  But you need to consider a lot of things...How risk averse are you?  What's the neighborhood like?  Is there anyone that could keep an eye on it for you like a retired neighbor?  (My hometown lets folks notify police for frequent drive-bys while they are out of town.  Maybe they will do that for you, too.  Though I did have a friend whose place was broken into anyway, so it's not a guaranteed fix.)  How much is the house worth?  (I'd be more likely to insure a $500k home than a $150k home.)  How much is the insurance and do you have that available?  How long will it be vacant?  

Unfortunately, with insurance, you only know for sure that you made the right decision after the fact.  lol  But if it's something you really want to start doing, there is a space on the BP property tools to input other expenses.  You can just add it to that in the future to ensure that insuring it won't mess up your bottom line.  :-)

You need Builders risk insurance, it's what most use.

Less than $1000 for six months on $200k probably.

Bob Peppe. Pelican Insurance, Fort Lauderdale.  He is a flipper too, he knows the game.

Yoni,

What you will need will depend on the details. If the work on the SFH is done (has CO) or has not started and will not for a while you will need a Vacant Dwelling policy. If you will be doing renovations and it will start shortly, Builders Risk coverage is needed (you will also need liability coverage). I recommend you get multiple quotes. The differences in coverage and price on the vacant policies can be significant. Also, on the builders risk policy, there are carriers that will do a 12 month policy that can be cancelled earlier for a refund. That can be better than buying just a 3 mos. or 6 mos. policy if everything else is equal. Pay attention to what is covered (in both policies). I've had people come to me who had been sold very basic coveage and were not aware of the things that were not covered. Good luck

Vacant property insurance is very cheap. Not sure why you wouldn’t want it, unless you’re fully covered by another policy.

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