Increasing Insured Amount After Rehab

[Billy V.]

I am still on the phone (on hold) dealing with the insurance company as I type this. They are refusing to insure my rehab at its true value. I purchased the property for $130,000 a month ago, rehabbed it, listed it, got an offer and it is pending now at $190,000. I called to increase the insurance $60,000. I told them what I did to the property and they said that what I did was cosmetic and they would not increase it. I asked for a manager and got them to up it by $45,000 and said I wanted a letter stating that they refused to insure my property for the requested amount. That way if I did have a total loss I may have a leg to stand on in court when the insured amount did not cover the re-build cost.

How are others handling insurance with a rehab?

Thanks,

Billy