Should I buy home insurance on a house that I buy cash for a short-term fix and flip? I'm in Broward, Florida.
I can't put the picture of the quad townhouses that burnt down 1 week before I closed on them,
A picture is worth 1,000 words.
Weigh the pros and cons. Pros are saving a little bit of money, cons are potentially losing a ton. All up to you.
I would always sauger insurance better safe than sorry
I am not an insurance expert.
A year or so ago, somehow the insurance company for one of my buyers discovered that a home had a lapse in insurance. ****ed with buyer's insurance premium. Buyer was on the fence about the property anyways, this was sufficient to cause the buyer to back out.
I don't know that we have any insurance people on here, maybe someone could educate the lot of us on that.
I'm not an agent or an underwriter, so take this with a grain of salt (I'm an adjuster, other side of the insurance business). But its all about risk.
If there is a lapse in insurance, that means any potential damage wasn't claimed, and therefore isn't on the records (there is a record of any and all insurance claims you have, no matter what company you have it with) and may have not even been completed. Risk is higher that there may be unforeseen issues, therefore, higher insurance premium.
@Jorge Garcia If it is a short term flip, 60-90 days, you total cost of insurance may be $200-$250? If your comfortable losing your investment to save $250, than do not buy the insurance. If you are not comfortable with that, buy the insurance.
Good comments everyone. I really appreciate the input.