All Forum Posts by: John Roberts

Michael,

The most common policy for a fix and flip is a Renovation Builders Risk policy.  It covers the existing structure and also the renovations/additions being done to the property.  It is runs from the start of the flip to the completion (Certificate of occupancy aka CO).  Depending on the company, you may be able to insure for a short time before and after the project.  Some Renovation Builders Risk policies include Liability, others do not (you would get a separate policy for that).  Generally you can buy those policies in 3 month, 6 month, and 1 year terms.  If the policy can be cancelled for a refund, I recommend going with the full year term.  If they cant be cancelled for a refund (fully earned), then one of the shorter terms may be better.

Occasionally we write a Vacant Dwelling policy endorsed to include renovation for these type of projects if the Renovation Builders Risk does not fit it.  If there is a long period before the project is to commence, you many need to do a vacant dwelling policy and then switch to a Renovation Builders Risk later.  Also, after the project gets it's CO, you will need to put it on a vacant dwelling policy if you are selling it or a Dwelling Fire policy if you are keeping it as a rental

I strongly recommend that you seek out an Independent Agent that represents many Insurance Companies.  As you can see, there is potentially 2-3 different policies you could need and one company may not be the best for all of them.  Look for an agent with experience in Construction/Real Estate projects.  

 Homesnap will provide you with tax and purchase history. We've used it to make properties favorites so we can come back later to do our analysis in another tool which I'll DM to you.

Generally speaking, if it isn't permanently attached to the land (in other words, if it can be moved, which sounds like the case), then the shed isn't realty... it's personal property and was not included in the sale. The terms cited above are pretty clear about that.

I would go back to the verbiage on the P&S, any type of language regarding building/structures should legally cover any liability you have of a claim she could make on the shed.

Even if its not, this just sort of screams out to me as someone who is desperate for money looking to take advantage of the situation; I would take a hard stance here versus allowing her to take the shed without vetting it thoroughly.

Does she have any receipts for the shed?