Columbus OH - Insurance barrier with potential BRRRR property

Columbus, Ohio
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Columbus OH - Insurance barrier with potential BRRRR property

Thom Ruley
Member since 2023 · 14 posts · 13 votes

In contract on a property that will need a bit of work. The price is low enough that I should have room to do at least a decent BRRRR (maybe not a perfect BRRRR). However, I was just informed that home insurance companies are getting REALLY picky about the properties they will insure. As I understand it, they have started doing their own inspections AND refusing to write policies on houses with potential issues (even if they are to be corrected in the rehab).

Is anybody else running into this lately, especially in central Ohio? If so, were you able to do anything about it?

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Patrick Rhodes
Real Estate Agent · Manchester · Member since 2021 · 25 posts · 22 votes
3y

I have not run into this here in Tennessee. I use Tennessee Farm Bureau. I am able to write policies that cover purchase price plus rehab cost. Please keep us updated as you learn so that we all can learn from this experience.   

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  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    3y

    @Thom Ruley upon acquisition and during the renovation, you would insure the property with a Builders Risk policy.  Once the policy is rehabbed and rent ready, you can insure it with a traditional landlord policy.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Thom Ruley:

    In contract on a property that will need a bit of work. The price is low enough that I should have room to do at least a decent BRRRR (maybe not a perfect BRRRR). However, I was just informed that home insurance companies are getting REALLY picky about the properties they will insure. As I understand it, they have started doing their own inspections AND refusing to write policies on houses with potential issues (even if they are to be corrected in the rehab).

    Is anybody else running into this lately, especially in central Ohio? If so, were you able to do anything about it?


     I have not run into that

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Thom Ruley
    OP
    Member since 2023 · 14 posts · 13 votes
    3y
    Quote from @Jason Bott:

    @Thom Ruley upon acquisition and during the renovation, you would insure the property with a Builders Risk policy.  Once the policy is rehabbed and rent ready, you can insure it with a traditional landlord policy.

     Awesome! That's a new wrinkle in my brain. Thanks

    1Reply
  • Patrick Rhodes
    Real Estate Agent · Manchester · Member since 2021 · 25 posts · 22 votes
    3y

    I have not run into this here in Tennessee. I use Tennessee Farm Bureau. I am able to write policies that cover purchase price plus rehab cost. Please keep us updated as you learn so that we all can learn from this experience.   

    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Thom Ruley:

    In contract on a property that will need a bit of work. The price is low enough that I should have room to do at least a decent BRRRR (maybe not a perfect BRRRR). However, I was just informed that home insurance companies are getting REALLY picky about the properties they will insure. As I understand it, they have started doing their own inspections AND refusing to write policies on houses with potential issues (even if they are to be corrected in the rehab).

    Is anybody else running into this lately, especially in central Ohio? If so, were you able to do anything about it?

    Hey Thom, as a local investor and agent in Columbus Ohio, neither me or my clients have run into this issue - I have an absolute rockstar insurance agent who gives amazing insurance rates with top tier coverages. I would be happy to introduce you and help you out!

    [email protected]614-300-7535
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  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Thom Ruley I've been using Maggie Norton and Reeves Ralston at Real Protect for my own BRRRRs and those of clients who need a referral.  They're great because they understand the ins and outs of what these lenders look for on both the purchase & rehab phase + land lord phase.  They've helped me insure very old beat up properties in Saint Louis.  I'm sure they can help you out.  Most run of the mill big brand insurance agents don't have a clue what to do here because it doesn't make up their normal day to day business. 

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Thom Ruley
    I have not run into this. Still having insurance providers writing policies without them seeing the property. 

    [email protected]614-412-4565
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  • Charlie ScheidererPro Member
    Rental Property Investor · Columbus, OH · Member since 2019 · 19 posts · 15 votes
    3y
    Quote from @Thom Ruley:

    In contract on a property that will need a bit of work. The price is low enough that I should have room to do at least a decent BRRRR (maybe not a perfect BRRRR). However, I was just informed that home insurance companies are getting REALLY picky about the properties they will insure. As I understand it, they have started doing their own inspections AND refusing to write policies on houses with potential issues (even if they are to be corrected in the rehab).

    Is anybody else running into this lately, especially in central Ohio? If so, were you able to do anything about it?


     Hey Thom, we are a general contractor here in Columbus and we do our own rehabs on brrrrs and flips. We have a great insurance broker I can recommend you and we have not ran into any problems. If you need help feel free to reach out

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