Flippers insurance

[Kevin Adams]

I am in Richmond and Hampton Roads va. Does anyone know how to get economical insurance for your flips? i know the insurer doesn't like vacant properties but rates are way too high. Thanks!

[Ed Osowski]

We used the Robins Insurance Agency out of Henrico for our rentals when they were in the rehab phase. They had no problem insuring vacant properties which were often full gut jobs. Rates worked out to $50-$100 per month based on property size, condition, age, construction type, and location. I believe the industry term is builders risk insurance if you want to shop around. Large agencies like State Farm may not offer it so make sure to contact smaller, independent agencies that can write specialty policies with multiple insurers.

Word of warning, builders risk may not cover workman's comp and other liabilities associated with specialty insurance. Builders risk will help you if your investment burns down but it might be useless if someone falls off the roof. Make sure your contractor is fully insured for workplace injuries, liability, etc. Also, the deductibles I experienced were in the $5,000 range so a separate tool policy or inland marine endorsement may be appropriate if you supply some tools/materials but not enough to warrant filing a claim given the deductible. Long story short, find a broker and be careful to explain your full involvement in your flips. Only then can the broker recommend proper coverage.