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.
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
8y
@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.
Property Manager · Ridley, PA · Member since 2017 · 427 posts · 449 votes
8y
@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!
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.