Insurance for flips?

[Jason Baehr]

I'm currently closing on my first flip house. Its a 1350 sq ft single family home in the Houston area and needs mostly cosmetic work. My hard money lender requires I have homeowner insurance so I started by getting a quote from my agent for my primary residence policy. He is offering a "Vacant Property Quote" which covers 80% of the ARV (ARV is 130,000) for the dwelling and $300K liability, 3 month term and it is fully earned, for almost $800.

This is my first flip, but this seems pretty expensive to me for a 3 month policy. Can anyone let me know if I'm looking at the correct type of coverage for a flip, and can anyone in the Houston area comment on the cost? Thanks!

[Lyall Storandt]

@Jason Baehr I can only comment on our requirements, but Sherman Bridge Lending requires a vacant dwelling policy.

I could be wrong, but my understanding is that a builder's risk policy only covers you during the construction / rehab phase, but not during the marketing phase; whereas, the vacant dwelling policy will cover you as long as no one is occupying the property.

I have a few insurance contacts; feel free to message me if you need / want a referral.