Liability Insurance

[Christine Terrano]

The city I am rehabbing in requires me to have liability insurance and bonding. I am having trouble finding a company that will give house flippers insurance. Does anyone have any suggestions?  Thanks. 

[Kevin Romines]

Its really straight forward. Foremost has a vacant policy that will allow you to do a rehab on it. Communicate with your agent that you will be doing a rehab, give them the scope of the work, they will need to get it approved through the underwriter before the policy goes into place. The shell of the home is the main concern for Foremost, so plan on doing the exterior work of the home 1st. 

On this policy you can get liability, theft, and vandalism coverage which you cant get on a builders risk policy. The minimum earned premium is $250 so either plan on staying on that policy long enough to use up the $250 or you will be charged the remaining if you sell. If you are going to flip it over to a landlord policy after the rehab with Foremost, I have heard that they will waive the remaining amount of the $250 min. earned premium. I would ask your agent about this as I have never asked to have that waived or heard of that until recently.

They will do the personal lines policy even in an entities name, there are no limits o the numbers of policies you can have with them and they will schedule properties up to 35 homes per policy, so better rates and service fees. I also don't believe they have a dangerous breed restriction. There is a lot to like with Foremost.