Home Insurance for Flipping in Delaware?

Question

Hello BP community,

I am thinking of getting home insurance on my recent flipping project in DE.  I need an insurance company that will insure vacant house in DE.  Any suggestion?

I learned my lesson on my last project by having my brand new AC stolen from the vacant house.  I figured I could get by not having insurance since it was quick flip (4month), and it was pretty decent low crime area (rural).  Boy I was wrong.  Later, I've heard that there are crooks going around stealing outside AC units.  Having say that, the insurance policy should cover any theft and vandalism.  :)

Please let me know if you know any!  Thanks!!!

Kuba F. · Answer

@Jordan Kim I use reiguard on my properties and I'm happy with it.  Even with theft and vandalism coverage, it often doesn't make sense to make a claim.  Your loss would have to be pretty high, so in the case of A/C, you may want to try prevention and cage it instead.  With that in mind, I use the insurance more for liability protection.

Eric Armstrong · Answer

Jordan,

You will need a "Builders risk" policy.  I don't have a referral for you but I recommend you go to the DelREIA Facebook page and ask the same question.  There are many house flippers on there and I'm sure you will get several referrals for local insurers.

Good luck

Eric

Jordan Kim · Answer

@Kuba F. Account Closed

Thank you so much for your suggestions!!

Account Closed · Answer

@Jordan Kim I second @Kuba F. recommendation on Reiguard. The I believe their product was made for flippers.

Kuba F. · Answer

@Jordan Kim liability covers you and is a must if someone slips on your sidewalk, or falls off a ladder and sues you. Builder's risk covers the dwelling during construction and at least my policy covers theft and vandalism.  Foremost does vacant home which they say covers you during renovations so it could be adequate, but I would talk to them and compare the coverages.  I did this research years ago and for me my builder's risk policy turned out to be the most cost effective coverage.

Jordan Kim · Answer

@Kuba F.  builders risk and liability policy vs. vacant home insurance policy.  Which do you recommend? and why?  does builders risk policy cover vandalism?

Jordan Kim · Answer

I guess I needed the confirmation from you guys.  Yes, I shall make that part of my "procedures" from now on.  Thanks!

Eric Armstrong · Answer

Absolutely get it. Foolish not to. What if it goes up in flames?  What if someone gets injured on the property?

Kuba F. · Answer

@Jordan Kim yes definitely get a builders risk and liability policy.  That's not a lesson you want to learn the hard way.

Jordan Kim · Answer

@Kuba F. and @Eric Armstrong  Thank you for your reply.  Do you guys think it is even feasible/good idea to get the home insurance on flip?  LOL  May be I haven't learn the lesson yet.

Home Insurance for Flipping in Delaware?

Most Popular Reply