I have written both builders risk policies as well as vacant property coverage. Personally I would go with vacant property coverage due to the fact that you also get liability on that type of policy where as builders risk is purely just coverage for the dwelling and contents. No liability coverage. Considering your going to have people on and off the property, can you really take the chance of not having liability coverage? The builders risk policies are fully earned premium policies. That means that if you are able to rehab and sell or rehab and switch to a landlord policy in say just 2 months, sorry about your luck, you not getting any premium back. The vacant property coverage that I write is through Foremost, a company Farmers owns, and their minimum premium is $250.00, so I set my flippers up on this policy on a monthly or quarterly basis and that way they pay no more than what they have to or a min. of $250.00 for the time while the property is vacant or it then becomes sold. As far as doing the policy in an entity, no problem, I just set it up that way, all the rest is the same.

You are going to need vacant property insurance it's expensive and not all companies do it. I used Farmers, and it's around $140 a month

I believe in addition to the insurance you have as a contractor, you will need a commercial policy for the company which protects from injury on the job site and any possible liabilities that may exist.

Hello! This post has some good info. Might want to start there. Also contact local flippers and see who they use. https://www.biggerpockets.com/forums/95/topics/58415-insurance-for-flip-homes

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Updated almost 9 years ago on 05/12/2016. Most recent reply

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Russell FryePoster

Spokane, WA

Rehabbing & House Flipping

Insurance on a flip?

Russell FryePoster

Spokane, WA

Posted May 09, 2016 12:49

I just bought my first flip house and was wondering what type of insurance if any I should buy. I am a newley minted general contractor in eastern Washington and I'm insured and bonded but I'm not sure if property owned by my business is covered. Any thoughts?

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