Insurance for flipping

[Will F.]

What type of insurance do you all recommend for short term real estate holding and construction. Liability, etc? Also how do you generally hold title? LLC?

Our plan is to flip and only hold for 4-6 months.

[Jason Bott]

@Kyle B. 

The vacant building policy is an option, but it is not ideal for flipping.  A vacant policy typically excludes the following,

Vandalism

Building glass breakage

Water damage

Theft or attempted theft

Sprinkler leakage (unless the insured has protected the building against freezing)

A builders risk policy will typically cover these perils.

An added coverage the Builders risk covers is  "Property in Transit".  Think of picking up windows or cabinets form Home Depot and then getting into an auto accident.  Damage to the windows and cabinets would be covered.  The typical limit for "Property in Transit" is usually $10,000 or $25,000.

Hope this helps

[Jason Bott]

@John Razz I'll send you some info now.  Good luck in your new venture!

[Carol Birnberg]

Would u add that insurance even if it’s for 1 month?

[Jason Bott]

@Carol Birnberg are you asking if it can be done or if you should have the flip insured if it's just for 1 month?

1) Yes, you can buy coverage for 30-60 days

2)  Insuring a property is up to each investor, but if there is some financing involved, it will be required.

I'd say 99% of flippers buy coverage for the property no matter what length of time.  You are risking a total loss of your investment, plus more $ to clean up the site, to save $50.

[Carol Birnberg]

u answered my question. Thanks.  

[Carol Birnberg]

1. & pls send me inf about the insurance. I am pulling the trigger......so i rather have insurance as well

[Carol Birnberg]

ohh pls send me your inf to check on rates for insurance . 

[Jason Bott]

@Carol Birnberg sending now.

[Stefano Grottoli]

Send it to me as well please!

[Francois Martin]

I am starting a flip in RI and my regular insurance broker is not reponding. Can you send me info please? Thanks

[Jason Bott]

@Stefano Grottoli & @Francois Martin I'll send over now.

[Judy Hao]

@Jason Bott - I am interested in the program. Can you please send me the info? Thank you!

[Jason Bott]

@Judy Hao I'll send over now. 

[Joo Park]

@Jason Bott

May I get that insurance info as well?  Thank you so much, Jason!

[Joo Park]

@Jason Bott

May I get that insurance info as well? Thank you so much, Jason!

[Jason Bott]

@Joo Park no problem. I'll PM you

[Luz Pagan]

Hi Jason,

Can you PM the NREI information?

Thank you,

[Brandon Reda]

@jason bott can you also PM me the info about the NREI program? Thanks in advance!

[Ryan Steiner]

I know this is an old thread but would love the contact info if you don't mind sharing?

[Nancy Zhao]

Anybody tried Foremost? NREI is kinda expensive on larger higher end properties, especially ones that do not require extensive rehab.

[Joseph ODonovan]

@Ryan Steiner I have my first flip under contract. I got a Builders Risk policy from Snyder & Moore Agency in Exton, PA. My contact person was Kevin Roache. Don't have his contact info at my fingertips but just google the company name. Good luck!

[Ryan Steiner]

Thanks, Joseph! I appreciate it!

[Ken Olson]

Jason, I have my first property under contract and expect to close at the end of this week. Can you please send the information as well? I have contacted a rep at NREI and they offered me a builders risk policy and what they sent did not include theft. 

I'm looking for property coverage, theft coverage and liability coverage and I thought they offered all three. Maybe I'm asking the wrong questions or not speaking with the righ person.