Cost of Builders Risk insurance policy. Why so much?

[Chris Schorre]

Hi everyone, I just purchased a fixer in East Austin 78702 for $327K and plan to put about $100K into it. I called to get quotes from two agents on insurance for a six month period and both quotes came in around $1850 including liability coverage. I realize there are many more risks associated with vacant properties and especially ones under construction but I wonder if that's in line with what other investors have seen for insurance quotes. Many thanks.

[Jason Bott]

Originally posted by @Chris Schorre:

Hi @Nina Hayden I did get quotes from Zurich and Foremost but will get another one. 

Chris, those 2 are the main options in the marketplace for Builders Risk policies.  

There are insurance programs out there for flipping that you could look at, but they are not a traditional Builders Risk policy like you are seeing from Zurich.  So if you don't want to pay for some of the additional coverage's Zurich is offering, then you should consider.

Another consideration, these Flipping programs are month to month, while with a traditional Builders Risk policy, you are locked into that time frame.  If you finish early, you don't get any of the unearned premiums back.

I'll send you a note on who most of my clients use.