All Forum Posts by: Anthony Lee

@Yulia J. @Account Closed, just to chime in here there are a few things which need to be addressed. 

1. Insurance provides coverage only when there is a covered loss. The causes of loss, otherwise known as perils, are named on most policies. Most policies name the specific perils. In this situation, If the cause of loss is not due to one of the named perils,  coverage will not be provided. 

2. Loss of use coverage only comes in to effect when there is a covered loss and the home is uninhabitable during the reconstruction. (I.e. The house burns down, and the loss is covered, and the insured has loss of use coverage, the policy would provide coverage for reasonable alternative accommodations for the duration of reconstruction or up to the coverage limit) 

3. In Yulia's situation, as she described, there is no loss. She is planning to update the electrical in the house. It is scheduled. It can be done at another time. There is no loss associated with this because it is willful.  It is maintenance being done. It is not a loss. And therefor would not be covered by either the landlords insurance or the renters if they did have it. 

4. Insurance is a contract of indemnity. It is is meant to restore the insured to the condition prior to a loss. It is not something to profit by. 

Welcome to the community! I'm sure you'll find it a great resource!

Welcome to the community! I'm sure you'll find BP a great resource. Feel free to reach out, any time!

@Kay Ferdous The insurance figure seems to be a bit low. Feel free to reach out offline. I'd be more than happy to discuss and get you some solid figures. 

@Jane Wu Definitley would want to know what the insurance premiums would be and take those into account. Feel free to reach out offline if you like. I'd be more than happy to go over it with you. 

@Ben C. You will need a builders risk policy. There are some special programs which have been developed specifically for flippers. However, they are an generally an expanded version of a builder risk policy. I just PM'd you. Feel free to reach out offline with any questions you may have. 

Welcome to the community!

There is a wealth of information available on www.floodsmart.gov and the MSC (the link is above and j will post it again once I'm at a pc) As an insurance agent I would advise that you contact an agent with any and all questions relating to flood maps, zones, and insurance. There are many factors that go into flood mapping and zoning. And the only way to really know what zone applies and what the options may be is to speak with an agent. I know most people will see a property and when they find out that it is in a high risk flood zone, they will immediately stray away. There may be options in this case. I have seen so many good deals get left on the table simply because the property is in a high risk zone. Flood Insurance is one of my specialties. I would be more than happy to have a discussion and answer any and all questions you may have; on this and any other matter. Feel free to reach out.

@Mike McCarthy Either way, whether you decide to put the property under an LLC or keep it as an individual, i cannot stress the importance of having a good insurance policy in place. Especially being that it's your first BRRRR.

If you set up an LLC for property management, I would also recommend that you have a liability policy in place for the LLC specifically also.

@Tracy Sharpe I'm sorry to hear your tenants left without notice. @Michael Le is correct. If the property is vacant you will be required to change your insurance policy to a vacant property policy. Feel free to PM me is you have any questions about such.