Types Of Insurance For A Flip

[Brandon G.]

I'm curious to know what all risks are involved in the process of buying, fixing and selling a house. The risks I can think of are theft, vandalism, damage during construction, injury to a worker. What other risks are involved? I have read that a builders risk policy is the way to go. Does this insurance cover all of the above mentioned risks?

My biggest concern is injury to one of my contractor's workers. Most residential contractors here in Dallas that I've had experience with do not carry workers compensation. Is this a risk to me or to the contractor?

Also, my wife and I will likely be occupying the homes of the first few flips. Would this effect what type of insurance is needed?

[Tom Keith]

@Brandon G.  boy You asked a good one!   Ok. The physical damage to the property such as the structure and anything in it to be used it rehab will be covered by Builders Risk policy, a definite Need in what you are doing. Zurich allows you to occupy while rehabbing. iM me and I can give you a lead for getting this.  Now to the injuries that can happen to workers on site that is a big one,   You can get a liability policy to cover this separate as it is not a part of physical damage.  I have a lead there as I'm sure that many others do also.  Now, if you do NOT purchase supplies for the sub contractors you are not considered a GC  and therefore not required to or responsible for injuries. Now, anyone injured on your property can sue you so the aforementioned liability coverage is recommended. Hope this helps you.  Tom