Real Estate Investor · Virginia, DC &, MD · Member since 2008 · 261 posts · 71 votes
What type of insurance are you getting for your flip homes and where do you get it from? All the insurance agents I have contacted have rejected insuring a flip home. I finally found one company but it costs $585 for 3 months. ouch.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
My Farmers Agent is able to write a policy through Craftlake Insurance Agency (here in CA, not sure about other states) and while it is the $500 per 3 month deal, it is well worth it in my opinion. Skimping on insurance opens the door to potential huge losses to the investor. Why take on unnecessary risk, just pay the fee!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
You need either empty house or builder's risk. Yes, its quite expensive. Some companies have "fully paid" properties where you're on the hook for the full premium even if you sell after holding only a week. Others will pro-rate the premium and refund the unused part. And, yes, its difficult to find this insurance. Most companies won't write it. The one policy I currently have is with Foremost.
Investor · Tampa, FL · Member since 2010 · 377 posts · 56 votes
15y
google Wrenn Insurance out of TX.. I've gotten prices from $50 - $125 /month from them before depending on the property. i still use them now. good luck.
You need either empty house or builder's risk. Yes, its quite expensive. Some companies have "fully paid" properties where you're on the hook for the full premium even if you sell after holding only a week. Others will pro-rate the premium and refund the unused part. And, yes, its difficult to find this insurance. Most companies won't write it. The one policy I currently have is with Foremost.
Jon: I have one policy with foremost too. I haven't received the policy yet to read it. do you know if it has workman's comp coverage? My ins agent says it does but I have doubts. And, yes, it's expensive, $2,800/yr for $220k coverage, vacant policy. According to my agent it will be prorated.
Joel: I got a quote from American Modern for the same property, it was more expensive, I went with the cheaper Foremost. I don't know which has better coverage i didn't read either policy.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
My Farmers Agent is able to write a policy through Craftlake Insurance Agency (here in CA, not sure about other states) and while it is the $500 per 3 month deal, it is well worth it in my opinion. Skimping on insurance opens the door to potential huge losses to the investor. Why take on unnecessary risk, just pay the fee!
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
Same goes for those who skip home inspections. It makes no difference how good you are at identifying problems in homes, having a second pair of eyes on the property for a few hundred bucks is worth it in my opinion. This is another step I do not skimp on.
Will: Good to have another carrier to get a quote from, thanks. The way you posted you makes it sound like we are skimping if we don't pay more than the next guy. Doesn't it come down to the coverage you are getting? Just because you are paying more doesn't mean you are getting more.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
Not sure about the workman's comp. I don't think so, but this is an "empty house" policy. Its about $150 a month for about $175K in coverage. Workman's comp really should be on your contractor's coverage, though I guess if you're the GC, that would be your responsibility.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
David, That is not how I intended my message to come across. Point is that yes, good "empty house" insurance costs more than a standard policy, but should be purchased by all rehab flippers and not try and get by with another polciy that just does not offer teh coverages we need just to save a few bucks.
Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
15y
Will, I also go through Farmer's and have the policy through Kraftlake. Interestingly, I overpaid a bit on the renewal of the policy and I got a refund check from Foremost, so I guess they are still involved somehow.
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
15y
Vacant home policies are expensive but can be found. Ask your local hard money lender for a referral. I'm sure they require insurance on properties they loan on and get put you in touch with someone local. Good luck.
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
Jim, if you are in Montgomery County, you should look up John Peterson at profitableproperty.com. He can direct you towards the best insurance options.
Real Estate Investor · Mission, KS · Member since 2008 · 67 posts · 15 votes
15y
Obvious price is very important but don't let that be the lone determining factor in your decision. Be sure that you have the proper coverage, no matter who you go with. Look for vacancy clauses and be sure you adequate liability coverage (especially for a rehab). I prefer monthly billing so you don't have to pay for 6 months or a year in advance. The convenience of having all of your properties on one bill is something to consider. The longevity of the insurance program is important as far as making sure that if you have a claim that they will pay it. I guess what I'm saying is, make sure to evaluate all aspects of the company, policy, and procedures before making a purchasing decision.
Real Estate Investor · Normal, IL · Member since 2010 · 15 posts · 0 votes
15y
Wow i need to go shopping...here in central illinois i have been paying $300/month for empty home insurance.... state farm and country insurance wont except it so they contract it out....I usually use the empty for a month or 2 adn then ahve it switched to renters with a month to month tenant ( painter)
Real Estate Investor · Camarillo, CA · Member since 2011 · 1 post · 1 vote
15y
Just wanted to say thanks - I signed up as a new account 30 minutes ago and the replies to this thread have gotten me out of a jam. I have three calls in to different insurance agencies requesting a quote on a empty house policy.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
If you click on the profile for Jason T (by clicking on his name in the post he wrote earlier in this thread), you can go to his blog or find the link in his profile for "Convenient Insurance" - and you will be able to find the website for the company he is affiliated with, where they will give vacant policies by the month (rather than by the quarter or longer).
Real Estate Investor · Virginia, DC &, MD · Member since 2008 · 261 posts · 71 votes
15y
Called Foremost. For a home with a dwelling replacement cost of $170,000 they will offer a policy of $1971 for 12 months($164/ month). They require a $400 deposit and will break down the remaining balance into 9 payments. He said to just cancel the policy when I sell the house and they will refund the extra $$. They have a minimum $250 cost that is not refundable.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
15y
Originally posted by Jim S:
Called Foremost. For a home with a dwelling replacement cost of $170,000 they will offer a policy of $1971 for 12 months($164/ month). They require a $400 deposit and will break down the remaining balance into 9 payments. He said to just cancel the policy when I sell the house and they will refund the extra $$. They have a minimum $250 cost that is not refundable.
Jim, what else aside from replacement cost does that Foremost policy cover? I ask because it sounds higher than the price I get from farmers and mine comes with $1M liability coverage plus rehab costs are 100% covered, including theft.
Real Estate Investor · Virginia, DC &, MD · Member since 2008 · 261 posts · 71 votes
15y
Originally posted by Will Barnard:
Originally posted by Jim S:
Called Foremost. For a home with a dwelling replacement cost of $170,000 they will offer a policy of $1971 for 12 months($164/ month). They require a $400 deposit and will break down the remaining balance into 9 payments. He said to just cancel the policy when I sell the house and they will refund the extra $$. They have a minimum $250 cost that is not refundable.
Jim, what else aside from replacement cost does that Foremost policy cover? I ask because it sounds higher than the price I get from farmers and mine comes with $1M liability coverage plus rehab costs are 100% covered, including theft.
The policy from Foremost has a $1000 deductible. $300,000 in liability. And it covered theft.
The policy is $1972 per year with an initial payment of $410.23 for $170,000 in total home coverage. The will refund payments with a minimum policy premium of $250.
In a perfect world I will hold a home for 91 days to clear those frickin' FHA anti flip rules. That is $164 per month or $492 for a 3 month period.
I thought about asking to increase liability but forgot when signing up for this policy. Would consider moving closer to $1M in liability on future projects.