What insurance to buy for Fix and Flip property?

[Rahul Gupta]

Hello, 

I am starting a project soon in a small town in IL, and looking for some help on where to buy the insurance that will cover the builders risk as well as the property itself in case of fire or flood. 

I looked on steadily. com as well as spoke to a statefarm agent but i am not getting any clear answer on what will be the right type of insurance.

Should I get the dwelling coverage based on the amount of investment I will do or the rebuild cost? I am not sure if it makes sense to get a coverage for 300k as a rebuild cost when my total investment will only be 80k with an ARV of 120k.

Is there an online portal or an agent I can talk to who has the expertise tpo deal with fix and flip insurance in IL?

Thank you for your time. 

[Rod Hanks]

Quote from @Rahul Gupta:

Hello, 

I am starting a project soon in a small town in IL, and looking for some help on where to buy the insurance that will cover the builders risk as well as the property itself in case of fire or flood. 

I looked on steadily. com as well as spoke to a statefarm agent but i am not getting any clear answer on what will be the right type of insurance.

Should I get the dwelling coverage based on the amount of investment I will do or the rebuild cost? I am not sure if it makes sense to get a coverage for 300k as a rebuild cost when my total investment will only be 80k with an ARV of 120k.

Is there an online portal or an agent I can talk to who has the expertise tpo deal with fix and flip insurance in IL?

Thank you for your time. 

You need a builders risk policy for the finished value of the project. Builders risk will cover fire theft vandalism malicious mischief windstorm and hail storm damage but will not cover flood. If the property is in a flood plain you would need a flood policy. I’m licensed in IL and happy help.