Flip property insurance and contract clauses

[Hira Bakhsh]

Hi Folks,

Looking for some guidance for insurance and contract clauses for a flip property:

- What insurances should I consider to fully protect myself and the property against any and all liabilities

- What essential clauses should I include in my contracts with my contractors to gain maximum protection and benefits

- Any other advise for starting of a rehab project

Finally, I love to connect with fellow investors. Say 'Hi' if you would like to connect and expand your network.

Your replies are greatly appreciated!

Regards,

HB

[Mike Cumbie]

Hi @Hira Bakhsh

It's a matter of personal risk. As far as a flip LLC we go with a general liability policy. Require anyone there to have insurance and provide it. For the dwelling coverage we prefer just enough to really cover the property/debt and that's about it. If something catastrophic happened to the property we would be out some money, but not all. In our area flip insurance is fairly pricey and it adds up quickly. So if the place burns, we can at least pay off what we owe. Most likely have costs to demo/sell etc still left to deal with