Vacant or Rehab or Home Owners Insurance Questions and help

4 Replies

Thank you, all for your contributions in advance and thank you to BP for creating this awesome resource. Every new project is new adventure, here I’m working on another one.

We’re about to close on property in distressed property Fort Mill, SC

The property is currently intended for personal use, family members may occupy it in the future. It requires rehab that may take about 5 – 9 weeks to finish. Rehab work should start in 2-3 week for after closing. We may flip it too depending on the situation. (I'm also looking for RE agent and contractors to work on this project….PM me)

I was shopping for Home Owners insurance and have already for received few quotes from my current agent (It seems high). Since the date of occupancy could change; So, I’m looking into possibility of vacant or unoccupied insurance coverage to protect our investment with the correct coverage.

Living Area:- 3,800 SqFt.

Near a lake but looks to be outside FEMA flood zone

ARV: $425,000 - $450,000

Previous property Hail damage claim (year 2014): $2,600

Insurers Replacement costs: $600,000 (Looks high to me)

Personal Property costs: $450,000 (Wow!) – I don’t have that much personal stuff.

I'm not sure why my new property quote is almost 4-5x high, with property coverage which it only twice my current property?

Maybe they quoted me a vacant policy?

Please share your valuable experiences, comments and suggestions. PM me if you need more details. Thank you


@Steve K. vacant properties are much larger liabilities than occupied.  You are for sure going to pay more to get them covered.  I would shop around and especially look for a broker that does larger commercial rental properties (multi-family) that can shop around with some brokers etc.


I wanted to give you another path for the Insurance . If you will not have your contents there during the renovation you could look to a Renovation Builders Risk policy. The typical policy will cover the existing structure at Actual Cash Value (ACV = Replacement cost - depreciation) plus the cost of the renovation at Replacment cost. There are short term policies or full year policies that can be cancelled for a pro-rated refund. Once you have your Cert of Occupancy, you will need to replace the policy with either a vacant dwelling policy or a Homeowners depending on how quickly it will be occupied.