Insurance for flipping

[Will F.]

What type of insurance do you all recommend for short term real estate holding and construction. Liability, etc? Also how do you generally hold title? LLC?

Our plan is to flip and only hold for 4-6 months.

[Jason Bott]

@Kyle B. 

The vacant building policy is an option, but it is not ideal for flipping.  A vacant policy typically excludes the following,

Vandalism

Building glass breakage

Water damage

Theft or attempted theft

Sprinkler leakage (unless the insured has protected the building against freezing)

A builders risk policy will typically cover these perils.

An added coverage the Builders risk covers is  "Property in Transit".  Think of picking up windows or cabinets form Home Depot and then getting into an auto accident.  Damage to the windows and cabinets would be covered.  The typical limit for "Property in Transit" is usually $10,000 or $25,000.

Hope this helps