Looking for a cost effective Property and Liability insurance compa for a fix & flip

Boston, Massachusetts
Rehabbing & House Flipping
2yFollow

Looking for a cost effective Property and Liability insurance compa for a fix & flip

John Grande
Real Estate Agent · MA · Member since 2024 · 4 posts · 1 vote

I am using a hard money lender and just purchased a property from auction in Hull, MA. I am looking for a insurance company that is coat effective and works with fix and flip/construction property and liability insurance.

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Gloria N GearBusiness Member
Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
2y

Try Goosehead Insurance -- they are a brokerage (not a single agency) started by investors because they were not finding the products they needed. My local Goosehead rep, looks across all the agencies to find the best vacancy insurance for me, then flips it to a different company as soon as I get a tenant in it. (If I am doing BRRRR)

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  • Kellie Powell
    Flipper/Rehabber · Peru - Kokomo, IN · Member since 2022 · 39 posts · 20 votes
    2y

    We use American Modern Insurance for our fix n flips. (Our personal State Farm Agent recommended them and so far its worked out well) We are in Indiana.  I don't know if they cover your area, but maybe its worth a shot?

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  • John Grande
    OP
    Real Estate Agent · MA · Member since 2024 · 4 posts · 1 vote
    2y
    Quote from @Kellie Powell:

    We use American Modern Insurance for our fix n flips. (Our personal State Farm Agent recommended them and so far its worked out well) We are in Indiana.  I don't know if they cover your area, but maybe its worth a shot?

    Thank you for the the reply I will reach out to them.
    0Reply
  • Gloria N GearBusiness Member
    Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
    2y

    Try Goosehead Insurance -- they are a brokerage (not a single agency) started by investors because they were not finding the products they needed. My local Goosehead rep, looks across all the agencies to find the best vacancy insurance for me, then flips it to a different company as soon as I get a tenant in it. (If I am doing BRRRR)

    1Reply
  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 677 posts · 259 votes
    2y

    I would strongly suggest a true independent broker rather than Goosehead.  Why?

    1. Knowledge.  Goosehead has loose standards for bringing on franchise agents.

    2. Service.  Goosehead charges their agents 50% of commission to service accounts on their behalf.  Goosehead operates large call centers with no personal service and undertrained/overworked staff.  

    Your agent is incentivized (and for survival they need to offload as much service as possible) to send you to a call center for anything after the initial sale.  Call the service center and see how long it takes to speak with a live person.  It can be brutal.

    3. Carrier selection.  Goosehead (because of their lax onboarding standards) does not get the pick of the litter when it comes to carrier appointments and they've caused significant issues with profitability at many of the carriers they do have relationships with.  As a national brokerage they also don't have many key relationships with smaller regional players.

    4. Commercial insurance capabilities.  Goosehead is very much a personal lines centered franchise.  They don't have the capabilities to handle sophisticated accounts or much that veers towards commercial lines insurance.

    5. Agents come and go.  Many Goosehead agents are not prepared to deal with owning an insurance agency and don't last long.  I've heard turnover approaches 50%.  Not surprising.

    I could go on but I think you get the gist.  I will say that there are MANY great Goosehead agents out there but the overall setup is not good for the consumer and it's hard finding who's serious vs. who simply had cash for the franchise fee.

    Just my 2 cents and opinion.  Your mileage may vary.

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  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    2y

    John,

    The policy you should be looking for is normally a Renovation Builders Risk policy.  It covers the existing structure at the Actual Cash Value (depreciated value of the building).  The renovations are covered at Replacement cost.  There is also coverage for materials In-Transit & at temporary locationss as well. 

    There are many markets for this coverage.  Some are standard companies and others are Specialty/Excess markets.  The condition of the property, if the property is coastal, fire protection for the town, what type of renovations are being done often will determine the Market we use.  Further, if there is Structural work being done that can complicate which companies will quote.  

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  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    goosehead is usually good and fairly priced 

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