Property Insurance during renovation

6 Replies

I will be closing on my first investment property mid August. It is a 3 unit but one of the units requires renovation. It has been stripped down to the studs. I have applied for a 203k loan and in the final stages but my insurance company just turned down the policy due to the construction. Does anyone have a company they use and can recommend for a similar situation.
2 units just need cleaning and painting, the 3rd unit needs drywall and the kitchen replaced.
Thank you for any advice.

I forgot to mention, I will be living in one of the units.

Shop around, you should be able to find a company that will be able to help you.

Congrats on your first purchase and best of success!

Originally posted by @Stuart Cairns :

I forgot to mention, I will be living in one of the units.

 I don't have any good recommendations for insurance provider, but I might ask the insurance agent if there is a different policy that you could take out in the interim until the Renovation is completed. If they can't do that call several other offices and try to find one who will. I imagine you have already tried this, but sometimes agents won't research other potential policies that might help you get to the finish line. Just a thought. Cheers!


I work in the insurance industry presently.  Do you have one of the major companies for your auto/home/life? -- (IE State Farm, American Family, USAA, Farmers etc?)

If you have one of the larger carriers who write their own property insurance such as American Family, Farmers, State Farm - they should be able to write you a policy.  Just be up front with the agent about how long the unit will be vacant etc.  Most times if you have a small multi unit property like that - as long as you are renting or trying to rent the other units, then the underwriters will be OK with one being vacant.  (Now after re-reading your post and seeing you will be living in one of the units I think all of the major carriers would be fine with it after it hits their underwriting dept.

Now if the whole building was stripped down to the studs that would be a different story - you'd need to have them underwrite a different sort of policy that could be converted to a non owner occupy later on, once renovations are completed.

You could try a handful of the large independent agents in the area - I'm sure they would have a company they can write with.

Allrisks is providing me coverage right now for my full gut job 203k. 

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