Basic Fix and Flip Insurance
Hello, What kind of insurance do I need for my property while I am renovating it? I will not be living there and there are no other occupants. Is there a certain level of insurance (liability only) or add-ons I should concern myself with? What do you guys get for basic 'cover-my-***' insurance coverage?
your insurance broker should be able to answer this for you! if you're using debt to do the project, your lender might also have requirements for this. i've heard horror stories of break-ins & tons of equipment stolen, flooding, fires, etc during flips.
Quote from @John Seitz:
Hello, What kind of insurance do I need for my property while I am renovating it? I will not be living there and there are no other occupants. Is there a certain level of insurance (liability only) or add-ons I should concern myself with? What do you guys get for basic 'cover-my-***' insurance coverage?
It depends on what type of work you're doing and the type of property...a knowledgeable agent will be able to help.
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#3 Rehabbing & House Flipping Contributor
- 12 Penns Trail Suite 138 Newtown, PA 18940
Will be a builders risk policy . Goosehead usually is good with it
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Jacob is correct it makes sense to have builders risk. If you use a rehab. lender they will require it. Goosehead is a independent agent business. We recommend Alex Gomez at Steadily Insurance. They have the most competitive pricing.
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#4 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@John Seitz NREIG. https://nreig.com
I do several fix&Flips. I take Builders risk for 6 months which will cover the renovation time. Once the renovation is complete, I take a vacant Policy. Builders risk will not cover vacant houses. Make sure you have the right coverage. Insurance companies will try their best not to fulfill claims by looking for loopholes. So it is very crucial to have a right coverage. Good Luck
Quote from @Jose Jacob:
I do several fix&Flips. I take Builders risk for 6 months which will cover the renovation time. Once the renovation is complete, I take a vacant Policy. Builders risk will not cover vacant houses. Make sure you have the right coverage. Insurance companies will try their best not to fulfill claims by looking for loopholes. So it is very crucial to have a right coverage. Good Luck
Thanks for this information. May I know what your 6 month total cost is? I’m trying to estimate the cost of insurance for my holding cost calculation
Quote from @Jose Jacob:
I do several fix&Flips. I take Builders risk for 6 months which will cover the renovation time. Once the renovation is complete, I take a vacant Policy. Builders risk will not cover vacant houses. Make sure you have the right coverage. Insurance companies will try their best not to fulfill claims by looking for loopholes. So it is very crucial to have a right coverage. Good Luck
When you say Builders Risk, what is the breakdown? eg, 300K liability, 20K theft, 200K dwelling, etc.
Quote from @Shango Collier:
Quote from @Jose Jacob:
I do several fix&Flips. I take Builders risk for 6 months which will cover the renovation time. Once the renovation is complete, I take a vacant Policy. Builders risk will not cover vacant houses. Make sure you have the right coverage. Insurance companies will try their best not to fulfill claims by looking for loopholes. So it is very crucial to have a right coverage. Good Luck
Thanks for this information. May I know what your 6 month total cost is? I’m trying to estimate the cost of insurance for my holding cost calculation
About $700. But it also depend upon the square foot of the house and location. Consult a local insurance agent, they will help you to get a free quote