Insurance for Vacant Property (during flip) in NY State

Insurance for Vacant Property (during flip) in NY State

Tim DelaneyPro Member
Buffalo, NY · Member since 2018 · 790 posts · 530 votes

I'm under contract on my first flip and after talking to my regular insurance broker I'm blown away by the amount that insurance costs on a vacant property. It's not so significant that it is going to ruin the deal or anything, but it is over 50% higher than what I pay on my primary residence and another rental I have. My broker only works with one company that will even cover vacant properties.

Does anyone have an insurance company that they like to use on flips in NY? I'm in Erie county if that matters.

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  • Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    6y
    Tim, When we write in NY we use different Markets depending on what the project is. If the Flip involves renovation then the coverage is normally Builders Risk and Liability or a Vacant Dwelling with renovation. If this is a just a vacant dwelling, American Modern and Foremost both write them. You have to watch what coverage you get quoted. Some of the vacant policies are only insuring basic perils (ie. Fire, Lightening, ,..) while others will insure on "Special Form" like your homeowners. Also, some will do Replacement cost while others only do Actual Cash Value for how they payout on the loss. You should probably seek quotes from an independent agent. If you do not get any recommendations feel free to PM me. I can give you the websites of some the carriers we use and you can see if there are any agents in your area.
  • Insurance Agent · Albany, NY · Member since 2020 · 32 posts · 21 votes
    6y

    Hey Tim. I'm an independent insurance broker in Albany NY. John posted a really good write up above me. 

    Vacant dwellings can get quite expensive. You are welcome to PM me if you want me to take a look. 

    American Modern and Foremost are good national carriers that can do it but, small regional ones typically do a better job at this type of policy. I have a few in mind that only do business in Upstate, NY. 

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