Property Insurance

[Ryan Mackfee]

Hello BP

I recently purchased my 3rd rental property and this one was a shell which is getting a total rehab. I had to pay cash for the property because of my debt to income ratio. So me question is do I need any other insurance but renter policy which covers the structure? And do I need any other coverage during construction? i have never owned a property that was vacant.

Thanks

Ryan

[Robert Leonard]

@Ryan Mackfee If you expect the property to be vacant more than 30 days, you probably need to have a vacant dwelling policy.  You need to read your policy to know what that period is with your insurer.  You may also need a builder's risk policy to cover materials that could get stolen if they get delivered and not installed quickly.  That's why you want "on time delivery" of materials when you expect them to be installed and avoid letting them sit around the job site. 

You need to have this conversation with your insurance provider ASAP.  The surprise may be on you if you have an incident and your insurer finds out you have a vacant dwelling.  You may have no coverage at all right now.