Builders Risk Insurance in Chicago

[David Green]

Hi All

I am starting my first flip in the south suburbs of Chicago and I need to get some insurance to protect me during the process.  I think I need a builders risk policy to protect against fire, theft, etc.  I read that a vacant property policy might not protect me from theft (copper).  Does anyone have a recommendation on a good company to use?  I have a couple quotes that are very high.  

$520 for 3 months (whole rate earned)

Many thanks.

[Blake F.]

My understanding is that you do need builder's risk during a flip.  The contractor's liability and worker's comp will not cover fire, theft, etc.  You can convert it to a vacant home policy after the rehab, while you are listing it for sale or rent.  This may lower the premium.

That is a small rehab job, so that premium price is pretty high.  

I got about 8 quotes for a builder's risk + liability policy for a Chicago rehab, a couple weeks ago.  Range was from $1700/yr. to $5000/yr.  This was for a $200k house + $130k rehab.

So you should be able to find a policy for way less than $2000/yr.

Some companies to call:

www.jhorninsurance.com

www.nreinsurance.com

www.ksa-ins.com

www.OlsonInsGroup.com