Insurance and Title Company

[Keith T Williams]

Hi everbody, 

I recently purchased my first investment property in Chicago (multi family unit). My Hard money lender is requiring I have an insurance company and title company. Can anybody please share their Builders risk insurance and title company. Thank you !

[John Mocker]

Keith,

A Builders Risk policy (or in your case, a Renovation Builders Risk Policy) is used for home under construction.  The Renovation Builders Risk policy has a limit for the existing structure and a limit for the renovations being put in.  Some areas that will limit the companies that will write it are:

1. Structural work (taking out load bearing walls, etc.)

2. If it will be occupied during renovation

The Age of the building and its systems (roof, electric, Plumbing, heating), the fire protection for the location, and other factors can change which company may be best for you.  I would suggest seeking out an independent agent who represents many companies.  Having experience with insuring flips, contractors, builders, etc. may be beneficial.  

Be aware that the lowest priced option may not be the best for you.  Examine the coverage (Special form is better than Named Perils), Fully earned policies mean that there is no refund if you finish early, and if there is Coinsurance have that explained to you by the agent.  

Good luck with the investment and feel free to PM me if you have questions on any of the above.