I'm a new investor who purchased a SFR in Illinois. I'd like to get the property insured. I'm a bit confused and quite frankly frustrated, as to what policy will best fit this situation. Since the property is vacant I haven't been able to find a homeowners insurance company willing to insure it. My goal is to renovate it and sell it. I would like coverage starting from the time I take possession, during renovation and up until the time it sells. I am concerned about theft during and after renovation so a policy that can cover that would be of utmost importance.
Any ideas on which policy might be the best fit? Is there a local company in Illinois? I’m sure I’m not the first one to deal with this type of situation, so any direction would be greatly appreciated!
My research has led me understand that I need a Vacant dwelling policy while it’s vacant and before any renovations start. Once I hire a GC and they start their work, I need a Builder’s Risk policy with a “Theft & Mischievous Damage” rider or a “Special Form” policy. Does anyone have any recommendations on who I should contact for these types of policies?
there is a local insurance program that combines both a vacant policy with a builders risk policy, avoiding the starting and stopping of multiple policies. I will send you a PM.
@Sherwin Baghai If you take the same hosue, with the same exact building vlaues, vacant and/or renovation policies will always be more than a hoeowners policy.
@Sherwin Bahai the policy cost will be higher when it is a vacant policy with a builders risk policy as compared to a traditional homeowners policy. The primary reason is because the property is vacant and a number of independent contractors are in and out of the property thus increasing the chance of a claim or loss. @Sherwin Bahai
Thank you both
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