Homeowners Insurance for a Fix & Flip

[Alan Daniels]

Morning BP!

Quick question as I'm working thru my first flip. Is it standard to require Homeowners Insurance premium for the full year to be paid in full at closing?

[John Mocker]

Alan,

Standard mortgage companies generally require a receipt showing 1 year paid in full for homeowners Insurance.  If this is a fix and flip you should discuss coverage with your agent.   Generally we do not use a Homeowners policy for a fix and flip.  Most of our carriers do not want the vacancy or construction exposure.  Generally I use a Renovation Buildiers Risk policy for the the Property and a separate Liability policy.  There are some companies that will write it as Vacant Dwelling with Renovation.