Builders Risk Insurance

[Michael Faulk]

Happy thanksgiving to everyone!

Does anyone have any "best bets" regarding Builders Risk Insurance? I purchased a cash property on Tuesday 11/26/2013 and will be rehabbing it over the next 90 days. The purchase price was $39,000 and my rehab budget is approximately $25,000 with an ARV of $106,000. When this property is completed I will take a loan out on it and keep it as another rental in my portfolio.

Questions:

-Any suggestions on carriers to use for these type of insurance policies? (I have a call into my insurance carrier I use on my other properties but, I just wanted to throw out some questions on BP)

-How much insurance coverage do I typically need?

-Are there any articles on BP that dive into this subject?

Any and all comments/suggestions would be greatly appreciated.

Once again Happy Thanksgiving to the BP community!

Michael

[Donald Stevens]

A builders risk policy would be for a new construction home. They increase your coverage as you build the home. What you need is a vacant home insurance policy that also insures your renovations. An agent that specializes in landlord insurance can help you with that. We write them all the time so we know they exist.