Insurance carriers for Rehabs?

Question

Greetings Members:

Does anyone know of an insurance carrier that will cover vacant rehabs aside from Lloyd's of London? I understand that they would have to be licensed to do business in my state (NJ). Thanks in advance.

Greg P. · Answer

Try Foremost Insurance.

Ann Bellamy · Answer

But homeowner insurance doesn't actually cover you for a vacant rehab property.  if you buy homeowner  insurance, and have a claim, you'll quickly discover that spending $300 for homeowner coverage is not a savings, it's a waste, because you weren't covered at all.

I refer all my borrowers to National Real Estate Insurance / Affinity Group.  They are not required to use them, but they are great to work with.  And convenient for me as a lender because if the borrower defaults, I can put insurance in the lender's entity name with one phone call or email.

They occasionally have growing pains, but so far, they have solved any problems once I bring it to their attention.  I'm a fan.

Steve Babiak · Answer

Some forum search results (hand-picked by me :D )

http://www.biggerpockets.com/forums/95/topics/59930-has-anyone-here-worked-with-afffinity-group-management-

http://www.biggerpockets.com/forums/53/topics/41874-the-best-insurance-for-rehabbers

Matt Horwitz · Answer

Check out Foremost and Erie.  I have use Foremost for vacant properties and then Erie once they are occupied.

Jeff L. · Answer

What is the difference between the rehab policy and the
Vacancy policy? My farmers agent gave me 
A very cheap vacant policy for $480 a year cover 190k

Jesse Tsai · Answer

I use Affinity, and have about 2 dozen properties with them now.

In my experience they're really easy to work with.  We simply fill out a web form for each property as we acquire and dispose of them.  They offer various options for coverage limits, and most of the time, they'll provide an evidence of insurance (underwritten through Lloyds of London from what I understand) the same day the web form is submitted.

The biggest downside with them is that the cost is a bit on the high side.  $100K renovation policy in Las Vegas runs about $65 a month, vs $300 / year for a normal homeowners insurance policy.

Hope this helps

Don Hines · Answer

I have coverage. But, I don't have a clue who it is. My agent handeled the details.
I wanted to chime in here and warn you about these 6 month policies. It is a royal pain in the rear if you need more than 6 months. I had to convince the carrier I was more than 90% finished with the rehab with pictures. Then he sent an inspector to make sure I was within his description of 90%. I had to pay for another year up front which is supposed to be prorated and the balance returned to me once I don't need to insure the property any longer.  I think Steve Babiak had some good poop on this subject a couple of months ago.
Don

Bienes Raices · Answer

TAPCO

Mark Yuschak · Answer

I buy my rehab policies from Zurich.  In my area, they're the best price.  I get $125K of coverage for $500 which covers me for six months.

Insurance carriers for Rehabs?

Most Popular Reply