Denied insurance claim

[Rick Stanton]

Purchased 8 plex that was vacant. Put insurance on it and started painting in some units and showing units. Within a week we had a major snow storm and water line froze and broke. Insurance company denied claim due to property being vacant for 60 days. We had no control of that since we only owned for one week. Any suggestions for me? Thanks

[Evan Polaski]

I used NREIG for all of my fix and flips, you set the coverage you want, typically purchase price + rehab costs for me, and it is not much at all, about $145/mo right now for 180k in coverage.  When I have it rented, it moves over to cheaper, long term policy.

The issue for me is not as much coverage of a complete loss, but rather someone trespassing, getting injured and making a claim.  THAT can cost you a lot.  Unlikely, yes, but being stuck with a $500,000 claim for medical bills would definitely be near financial ruin for me.  And, I would rather have the insurance attorney's fight it out then me having to manage all of it.