How can I get insurance on a property I will only own a few weeks?

7 Replies

Hello All,

I'm closing on two properties this week for $5,000 each. I am trying to find somebody to wholesale them to but may not be able to before I have close on them on Friday. (I do not want to push the closing back because of the relationship I have with the seller).

How can I get insurance on them? I will probably only own these properties for a week or two max.  Not worried about the property, but rather about my liability.

My insurance agent does not want to insure them on a landlord's policy for one week and he doesn't think that I could add them to my homeowner's.  I also have an umbrella policy with another company that has an additional liability on all of my other rentals. But I believe if I added those to the umbrella policy they would require a regular landlord policy to be place as well.

Anybody have in suggestions?  I doubt anything will happen, but that's what insurance is for, right?

@Will Gaston  

Since your plans are to wholesale, these properties are inventory, not capital assets, which is why an landlord policy is not appropriate.   

At $5000.00 each, are they really worth insuring?  Your deductible will likely be at least half that amount ... and it you are only holding them for two weeks, what is your real risk?

However, if insurance is a must, what do you have for business insurance?  Does it, or could it have, an inventory rider? {then the big question becomes will the insurer see real estate as inventory}.

@Roy N.  Thanks for your reply.  I am not worried about the risk of the actual property, but rather someone trying to sue me if they hurt themselves while on the property and then try and and go after me or my business.  

I don't have business insurance, but rather a commercial umbrella policy that covers additional liability above and beyond my landlord policies. 

@Will Gaston  

If it is only liability you seek, check your umbrella policy to see if it will cover, or can be enhanced to cover, these "inventory properties".

@Roy N.  Thanks.  I just emailed my agent to ask and will report back.

The company given in the profile of @Tim Norris  should be able to insure this for you. 

@Will Gaston  

  you may be able to put them on a builders risk policy.. my builders risk you just add and subtract properties monthly by filling out a simple form...

@Roy N.  I spoke with my agent and she can add them to my commercial liability policy.

@Steve Babiak  and @Jay Hinrichs  Thank you for your responses. I think both of the suggestions could be great for future projects.

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