How do I insure a home I am remodeling or flipping?
There are several insurance options when purchasing a home to remodeling or flip.
Builders Risk Insurance is a good option if there is 25% or more of the purchase price being spent for remodeling the home. To quote builders risk insurance the insurance company will want to know the following:
Purchase price of home and amount of rehab
The name and experience of the contractor(s) performing the work
The number of days to complete renovations
The nature of renovations (some may require an engineer’s report)
In cases where the rehab is minor, vacant house insurance will be the best option. Most insurance companies reduce coverage or eliminate coverage once a home is vacant for 60 days. That is why a separate policy needs to be issued. Some, not all vacant home insurance companies have a minimum 3 month policy. If the work will be completed and the home sold within 60 days, a company that will offer a refund for unearned premium is the best option.
Preferred Guardian Insurance offers rehab home insurance in many different forms, from builders risk insurance to vacant home insurance, we have an option for you.