We are looking for better insurance policies for property and liability on our flips in Southern California (adding our general contractor as additionally insured as well). Does anyone have recommendations on insurance companies and policies?
Here's some clarification on the question above. This is for Southern CA. Starting this year, we understand that a lot of insurance companies do not want to insure SFR investment properties that are vacant, to be renovated, and are intended to be flipped rather than rented out. As a result, the property and liability insurance that my team usually gets increased up to 266%.
Does anyone have recommendations on insurance companies and policies that will cover my situation for me to reach out to and get quotes? I've started the process of reaching out to a Travelers, Marsh, and Farmers insurance agencies. Are there other agencies I should be reaching out to as well?
Hi Kien, I'll keep this fairly high level; however, I'd recommend you contact a broker in your area, as they will be able to obtain proposals from various carriers that may underwrite these properties.
There are a lot of varying criteria that they look at: age of property, square footage, etc, so that will affect any quotes you will get too. Further, each property that you obtain will need to be insured as well, and there are various ways to do this. Sometimes carriers will have schedule of properties, so you can add/delete as the properties are bought and sold, and they pay something similar to a retainer at the onset of the policy issuance, and then it's deducted from as the insured adds properties, then once that retainer amount is depleted, they just have to pay whatever it costs to add the additional properties.
Hopefully you'll find someone that will be able to assist you in this area, as it is a lot of work to ensure those schedules are maintained and up to date.
Each state is different; therefore, the competitive carriers may vary as well, so a carrier that may be competitive in New Hampshire may not write, or be competitive in your area, that's why it's good to have a broker as they will usually know who will write that business, as well as who is competitively priced.
Thanks so much for the referral. I will reach out to Tim shortly.
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