Insurance for Wholesaling/Wholetailing

[John M.]

Hi everyone -

I'm wondering if there's an insurance professional (or seasoned real estate investor) in this forum who can provide some guidance on this topic: what is the type of business insurance required for wholesaling and wholetailing real estate?  

General liability is a must. But what about property coverage? Builder's risk?  Does a Business Owners Policy offer sufficient coverage? The prospect of getting a new property coverage bound for every contract signed is daunting and a builder's risk policy seems overkill on the small (new paint, garbage toss) type projects.

(I'm asking for all my New Jersey brethren)

[Derek Lacy]

Depending on your scale a monthly reporting form property policy with the vacancy clause removed is ideal, include GL for each property on that.

But to get that type policy, you need to be in the average 50 units owned at anyone time.

Otherwise your stuck in the call your agent every time you add a property.