Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes
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?
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.
Real Estate Agent · Depew, NY · Member since 2016 · 11 posts · 8 votes
9y
Looking into REIGuard is definitely worth the time. Great support staff and communication, easy to understand proposals and quotes. Insurance for Flipping and Buy & Hold projects. I highly recommend contacting Jason Bott to get started.
I've spent a lot of time shopping insurance options locally and you really need to find an agent or company that understands this business. You can have a real conversation with these people about what you do and they actually understand. They understand Vacant, In Renovation, Occupied, etc....they make it super easy to change between them, it's billed monthly, and the policy also includes general liability coverage, I haven't come across this comprehensive of a plan yet.
@Brandon Turner - We really need a podcast to discuss insurance needs, requirements, and options. This is something so many newbies and experienced investors are still struggling with.
@Matthew Marini I'm glad I could help with pointing you in the right direction for the flipping program and help with the rest of your business insurance. I'm confident we can find some good options. thanks again for the opportunity!
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Matthew Marini I completely agree with your assessment of REIGuard. They certainly seem so much more educated on the investor side of insuring houses. I believe I am going to use them with my up and coming 1st Rehab.
@Jason Bott thank you Sir, I got your colleague request and wanted to thank you for the info as well as your help!
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Tony Wooldridge I've been using REIGuard for all my properties now since discovering them about 6 months ago. Best discovery ever since started investing. They've saved me a ton of money, and simplify the process. I love how they put all your properties into one invoice, and send it to you early in the month with reminder to make any changes for that month. This saves so much time, and prevents you from paying for properties you've sold, or reminds you to swap properties to occupied, etc.
Looking into REIGuard is definitely worth the time. Great support staff and communication, easy to understand proposals and quotes. Insurance for Flipping and Buy & Hold projects. I highly recommend contacting Jason Bott to get started.
I've spent a lot of time shopping insurance options locally and you really need to find an agent or company that understands this business. You can have a real conversation with these people about what you do and they actually understand. They understand Vacant, In Renovation, Occupied, etc....they make it super easy to change between them, it's billed monthly, and the policy also includes general liability coverage, I haven't come across this comprehensive of a plan yet.
@Brandon Turner - We really need a podcast to discuss insurance needs, requirements, and options. This is something so many newbies and experienced investors are still struggling with.
I agree Matthew. There's a lot of discussion about liability LLCs incorporating, then the whole insurance vs LLC debates.
I guess this all falls under asset protection.
What do the Renovation insurance rates run on typical $500k SFR in Southern California?
I'd assume some hard money lenders would recommend or require this sort of insurance on a rehab/flip?
Investor · Canton, GA · Member since 2015 · 88 posts · 63 votes
9y
NREIG / REI Guard is the best option nationwide. Haven't found anyone that beats their policies. I use them exclusively for all my deals. http://nreig.com/
@Jason Bott - I am also interested in your insurance program for flipping. We will be starting a new business in the near future and would like additional information. Thank You.