What insurance to use???

Question

I'm in the process of closing on a foreclosure in the Atlanta suburbs that I am going to rehab and sell. I'm curious what is the best type of insurance and best insurance company to use to insure the house while it is vacant/being renovated.

Tim Norris · Answer

Find coverage that has no or a very short "minimum earned premium" period.  That way, you don't pay for more than you need...

Steve Babiak · Answer

Affinity Insurance is one that @Tim Norris is affiliated with.

Account Closed · Answer

I went through an insurance broker, ICM, for a policy from USLI and the annual premium for $200k property/$1mil liability is about $2k. The "earned premium" is about $500, so when/if we sell in three months, we should get about $1,500 back. I didn't shop around a whole lot, but that may give you a rough idea on pricing.

Mark Graffagnino · Answer

I got a builders risk policy thru an American Family rep I met at an Atlanta REIA Meeting.  Robin Mitchell.  Shortest term is 3 months, even on renewals, but was less than $100 per month.

Good Luck.

Steve Endress · Answer

If you have (or intend to have) properties in multiple locations/states, I would suggest the National Real Estate Insurance group.  It is easy to add or change properties, move from vacant to rented, etc, and they have good coverages.  Seems to be related to the Affinity Group.  I've had good experience.

Jacob Patterson · Answer

Thanks for the great info and contacts! I will try and get several brokers to give me prices and do my homework on what is covered in each policy.

Jeff Aponik · Answer

Keep in mind that the cost can vary greatly depending on the location of the property. If feasible, you should include vandalism & malicious mischief coverage. Also, ask your broker if the policy provides coverage for theft or if it can be added. Despite falling under the generic label of a "vacant" policy or "builder's risk" policy, there can be major differences in coverage from one policy to the next. Do your homework.

Tim G. · Answer

My best friend is my insurance agent, so I have a little loyalty and didn't really look around.  For my 1st rehab property, I am using American Modern Insurance Group.  I'm paying $116/mo.  I have a $1000 deductible and here are my coverages.

David T. · Answer

I second what @Mark Graffagnino says. Policy for 3 months cost around $500 on a $250k project. That was for cost of property and cost of rehab. Non occupied always costs a lot more. Gives you public liability coverage which is important. Good luck with your deal!

Jacob Patterson · Answer

Thanks for the info and the contacts! Mark I will contact Robin when I close on this next home!

What insurance to use???

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