What is the yearly cost for insuring a rehab property prior to sale/flip?

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Hey all.. if you had at least 12 to 15 properties scheduled for remodeling/fixup, I am hearing others say they typically take out some sort of builders and general liability insurance to cover things like vandalism, disaster of some sort, sub contractor injury on property etc... I also hear that it could be a pain finding a source to obtain coverage and some say they don't usually have to take out this insurance. Is this a necessity? What are some of the estimated cost for such a coverage per year? I hear this is different from regular insurance to protect renter. Anyone had to cover rehabbed properties or have an idea what the yearly cost range is? Thanks!

[J Scott]

There are lots of different insurance products that you might want to consider, depending on your situation.  I'm certainly not an insurance expert (in fact, I know very little about it), but in my experience/opinion, here are the major things you should be thinking about:

- Builder's Risk Insurance:  This is vacant-property coverage that will cover various aspects of the property while under renovation.  Some policies will cover things like vandalism and theft, some won't.  Generally good for catastrophic damage -- fire, fallen trees, etc.

- General Liability:  This will cover any damage you or your contractors do to other people's property.  You can have all your contractors carry this for themselves, and if you don't have any employees, you are probably well covered.  But, if your contractors don't all carry liability and/or if you have employees, you may want to get it.

- Workman's Comp:  This will cover injury/death to your contractors on the job.  You can have your contractors all carry this for themselves, and if you don't have any employees, you are probably well covered. But, if your contractors don't all carry workers comp and/or if you have employees, you may want to get it.

- Umbrella Coverage:  This will often cover you when other types of liability are over-extended.  If you have any personal assets, it's probably good to have an umbrella policy.

In terms of pricing, it will depend on lots of different things, and I couldn't even begin to tell you how much it would cost YOU on your projects.  But, you should find a good insurance agent/broker and have the conversation...