What Do You Pay For Flipping Insurance?

Question

Hey y'all,

I'm shopping around for insurance for my first flip just outside Atlanta, and I was wondering what you pay for monthly premiums. My entire project cost is $235,000 ($145,000 purchase + $90,000 rehab), and I *definitely* want replacement value plus theft/vandalism coverage.

I've gotten quotes ranging $170 to $209 monthly, but that seems really high to me.

Jason Bott · Answer

@Maxwell Lee I will PM you the info I sent to @Asim Alam

Asim Alam · Answer

I received a quote for a product called REI Guard through @Jason Bott here on BP.

Teri Feeney Styers · Answer

Home worth $150k when complete = $422 / 6 months @ US Assure. I also add my flips to my general umbrella policy for extra coverage if I am sued.

Asim Alam · Answer

Me too... I spoke with my hard money lender's underwriter to get the bare minimum requirements. This weekend I'm going to research REI Guard's coverage ($200/mo.) vs. the bare minimum Builders Risk+General Liability coverage ($140/mo.)... Seems like REI Guard is worth the expense. I'm risk averse on factors I can't control, so I don't mess around with insufficient insurance!

Damir Kamber · Answer

I just learned so much in such short time :) Thanks everyone and thank you BP for providing a place where good people can share valuable information!

Cheers,

Damir

Michael Noto · Answer

We are in CT and we typically have a builders risk and general liability policies when we are in the rehab phase of a project. We typically see $150-$200/ mo for rates based on the size and value of the building.

Jason Bott · Answer

@Asim Alam if you are insuring for a total loss, the policies max payout is purchase price plus your additional investment.  The profit you are creating in the flip is not insurable.

Most investors insure for the total investment right at the start so they don't have to increase the coverage for every in remental inveatment.

Asim Alam · Answer

Now I'm confused what level of coverage I'm supposed to get: The purchase price? Purchase price plus rehab cost? ARV? Arrrrgggghhh!

Asim Alam · Answer

Oh! Good to know... So that is a reasonable rate.  I was pretty impressed by the coverage.

What Do You Pay For Flipping Insurance?

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