What Liability Insurance Do You Get While Flipping?

[George Punnen]

Hey everyone, I'm looking for advice on liability insurance coverage for a flip.

Our LLC owns the property and has partnered with a general contractor (GC) for the renovation. We're trying to secure coverage for our LLC to protect against situations like missed disclosures during a sale, professional negligence that may affect a future buyer, etc. We thought an E&O insurance would cover this, but we’re having trouble finding a carrier. The reason cited is that since we aren’t performing the renovations, we aren’t exposed to these risks.

For those who actively flip, what type of liability / E&O insurance do you carry to protect against these risks? Have you found specific policies or carriers that offer this type of coverage? (we already have builders risk and premise liability in place)

Appreciate any advice! Thanks!

[Dominic M.]

Hi George, for liability coverage during a flip, consider a Builder's Risk policy for property damage, and a General Liability policy for third-party injuries or property damage. Since you're not performing the work, ensure the contractor has adequate coverage. You might also explore a Wrap-Up Insurance policy that covers all parties involved in the project. Good luck!