Insurance while rehabbing rental property

[Lior Golan]

Hello,

I have buying my first two rental properties and for closing, I need to have insurance. These properties will need a rehab.

I know that there is a rental insurance and homeowners insurance, but I don't know what insurance I need for the time of the rehab. I asked my contractor what happens if one of the workers falls and breaks his arm, he said that he is covered for accidents and liabilities up to 1,000,000$... So it seems like the normal rental insurance will be enough and the contractor's coverage will cover the accidents that happen to the workers.
But then I encountered in some investors in the forum that says that I need builders risk insurance...

So from your experience, what do I need to do?

Thanks

[Jason Bott]

@Lior Golan

There are specific insurance programs for property rehab/flipping that combine all of the risk below under 1 policy.  I will send you their info.

If you go out an buy a single policy for just one of the risks, here are the different policies types and when they need to be used.

Vacant Building policy - no renters and NO rehab going on

Builder Risk policy- Vacant and on going rehab 

Landlord/Rental Property policy - Tenants are occupying the property

If you purchase the wrong policy, the insurance carrier could deny claims stating you "misrepresented" the risk.