Problems with homeowners insurance for a REO needing work

[Jake Recz]

I'm in the process of buying a REO. I need to put in a kitchen, bathroom, floors etc. Sonit does need some work. Problem is I can't get regular homeowners insurance according to my agent. The ins company won't write a policy for the property in the condition it is in. What are my options? The agent mentioned an $800 six month special policy but is it really necessary? Regular homeowners insurance costs that much for a year! What are my options? Did you ever encounter a problem like that with one of your deals?