What's your formula for insuring a flip?

[Doug Danoff]

Hi All,

I've found a flip in the Boston suburbs.  First one.  So many things to work through!

I was curious how experienced flippers calculate the insurance they take out on their rehabs.  The combo of vacant and builders risk coverage cost was a mild shock.  

For argument's sake, if I'm acquiring the house on a small plot of land for $300K and I expect the rehab to cost $200K, how would you ensure this?  The full 500K?  Something less?  This kind of coverage seems to be about $500/month based on my initial round of quoting.  Seems nuts, but absorbing a total loss in the event of a disaster would not be an option for me.

The house would be vacant for the 6 month rehab.  I also need liability since I don't yet have an GL under my company.

Many thanks!