Insurance?

[Katy Yanda]

Hi All

You know, all these guru's talk about getting the title, flipping, how to get or sell the property. I've been to expensive seminars, affordable seminars, read on line articles, books.

But no one seems to talk about practical things like how to get your rehab house insured if no one is living in it. Yup, any one out there doing multiple short term rehabs? Got hazard or fire insurance? I'd really like to know how not to pay through the nose to insure these properties for the short time (less than 6 months) I'll be owning them. I do have insurance on the properties I have and it's twice the normal HO insurance rate.

Counting the costs,

Bird

[Will Barnard]

Originally posted by belinda:

If the property is ready to be rented and not in a state of disrepair, we declare it is being occupied for personal use. Storage, office whatever. Utilities need to be on and you need to occupy in some way. Works for us.

This is not what I would consier to be good or valid advice. Doing so is just the reason an insurance company would need to get out of paying a claim. Stating it is for personal or office use when it is not is insurance fraud.

As Bryan stated, insurance for NOO properties is more expensive and is part of doing business. Skimping on this could be a recipe for disaster. Error on the side of caution and get the appropriate insurance. Over insured may cost you a bit more, but under-insured could cost you everything!

Stve babiak, our resident Link Master has provided several links to reference on this very topic.

I use my Farmers agent who writes a policy thru Kraftlake Insurance. They provide NOO insurance, provide me a $1M liability coverage, include replacement cost and my rehab cost in the policy. It may be more, but is worth it to me. My property values are usually above $300k and often $400k and the 3 month cost is $450 or so. For less expensive properties, I am sure the cost goes down.

If anyone is in CA and would like to speak to my agent, feel free to contact him: Johnny Castaneda -
Note: I receive no kickbacks and have no affiliation with him other than my own insurance service provider.