New to Real Estate · Huntsville, AL · Member since 2019 · 38 posts · 21 votes
Hi everyone! I just started a business for flipping and I have two properties under contract. For those of you who have done this, what insurance should I have? I'm assuming both a business insurance and a property insurance on each property?
Zach, it often feels weird to hear this, as few groups butt heads the way attorneys and insurance companies do, but more insurances is almost always better in the long run. Yes, we generally like to see both an umbrella commercial policy for the LLC or corporation (don't do flips individually!) that manages the flipping business, as well as individual insurance policies for each property you will be EITHER owning for more than 2-3 months or doing significant work on. Please note, if there is any sort of loan on the property in question, you will likely be required to obtain the individual property insurance directly per the loan requirements anyway.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Zach, it often feels weird to hear this, as few groups butt heads the way attorneys and insurance companies do, but more insurances is almost always better in the long run. Yes, we generally like to see both an umbrella commercial policy for the LLC or corporation (don't do flips individually!) that manages the flipping business, as well as individual insurance policies for each property you will be EITHER owning for more than 2-3 months or doing significant work on. Please note, if there is any sort of loan on the property in question, you will likely be required to obtain the individual property insurance directly per the loan requirements anyway.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.