Is insurance important when flipping property?

5 Replies

I want to start flipping houses but I’m curious about what I should in for insurance. Since I’ll only be owning these properties for a short time should I even get insurance? And if so what type and what does it go for? Also what company would you recommend for this kind of insurance?

ALWAYS get insurance for your properties. 

Insurance companies will have policies that are for vacant properties at a much lower rate. Get those types of insurance for these properties. 

I recommend you have some amount of coverage for catastrophic events and injuries. I am buy and hold; however, during the rehab period I use 'vacant property' coverage from American Modern.

Originally posted by @Antoine Martel :

ALWAYS get insurance for your properties. 

Insurance companies will have policies that are for vacant properties at a much lower rate. Get those types of insurance for these properties. 

Curious where you are able to find vacant property policies for lower rates. The policies I buy are always much much HIGHER when the buildings are vacant.

Actually my insurance is always higher for vacant properties as well like @Ryan Murdock

@Bradley Reecer while you are rehabbing a space heater starts a fire and your flip house burns to the ground... can you afford that? While you are rehabbing there's a big snowfall and none of the workers shovels the sidewalk. The elderly neighbor slips and breaks her hip on the way to the mailbox. Her kids sue you. Can you afford that? I carry a vacant home policy on each of my flips AND a 2 million dollar umbrella policy over everything I own. The umbrella policy costs $250-$300 per year based on how many houses I am covering. The vacant policy is usually about $400 for 6 months of coverage. @Ryan Murdock is correct. Vacant policies are more expensive but I can't imagine going a day with no coverage... 

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