Insurance for a rental that needs some work

6 Replies

I purchased two single family homes recently and both are in livable condition but I'm having trouble getting an insurance company to cover one of then due to some issues with the shingles and some dry rot. I want to make the improvements to the property but need time. Any recommendations on what my options are or if getting builders risk coverage would work for this?

Hey Josh,

A builders risk policy would definitely work. A vacant policy would also do the trick. 

Will you have people living in the property as you fix the roof, or will you be doing other things as well? 

You may be able to find a company that is willing to exclude the roof until you get it repaired or replaced. 

I'd highly suggest working with an independent insurance agent. They're able to work with multiple insurance companies to find the best fit.

Let me know if you have any questions or want me to elaborate on anything...I'd be happy to help. 

@Ryan Ingram Thank you for answering this. I do have tenants in the house that needs the work and obviously would like to keep the income coming in each month. I've been working with an independent agent but never thought to ask about the builder policy until I read a few other posts about insurance. I'm going to contact that agent and see if that is something they can do.

Not a problem Josh! 

If it is occupied, you most likely won't be able to get a builder's risk. 

You definitely shouldn't move your tenants out to deal with this. 

There are insurance companies that specialize in providing insurance for properties that are in a bit rougher shape. 

Originally posted by @Josh Nelson :

I purchased two single family homes recently and both are in livable condition but I'm having trouble getting an insurance company to cover one of then due to some issues with the shingles and some dry rot. I want to make the improvements to the property but need time. Any recommendations on what my options are or if getting builders risk coverage would work for this?

Josh, it sounds like to work is cosmetic and a Builders Risk would be overkill.  Not to mention, like Ryan mentions, a traditional Builder Risk policy will require the property to be vacant.

I know of several companies that do not inspect that could work for you if your current agent does not have an option.  I'll send you some names.

Originally posted by @Josh Nelson :

@Jason Bott, the names would be very appreciated as my agent said he has already tried a couple of the companies he usually goes through.

I just sent.  As an insurance agent, if I list specific companies, BP usually takes the post down.