Insurance on Flip property

28 Replies

@Anu Gunn There are many variables to what drives a premium;  location, building value, sq/ft, etc.

  But if your rental is similar to your home, I would expect no more than a 50% difference up or down.

For Airbnb, you can add coverage to your current policy.  If your insurance company can not do it, there are many companies out there that can add coverage for Airbnb.

If you are having trouble finding a source, let me know.  

@Shannon S. Good points. 

FYI - If your properties are in OH, OH is a "Policy Limit" state.  Meaning that the insurance carrier is required to pay you the limit stated on your policy, no matter what you have invested into the policy.

So if you bought for $100k, invested $50k,  insured for $200k, then had a total loss, the insurance carrier would need to pay you $200k.

Your statement is correct in states that are not "Policy Value" states.  Just very important to know what the state law is.

Thanks everyone!  I'm just doing my first flip and therefore my first insurance purchase.  Went through NERIG.com very quick, professional, and right within my budget.  Expecting to sign agreement today.  Will report back results.

Updated over 1 year ago

So far so good! They were quick to get the policy issued and send all info to hard money lender.