Correct Insurance for flipping homes

[Robert Crozier]

All

We have a contract on our first home to start flipping, (exciting) from asking around we have received different answers to our question, "what insurance should we carry for flipping homes".

We have received the following, Builders Risk, Liability, Home owners and few others, should we carry one, all or a combination. There is probably no one right answer based on location, risk, lender etc. but what's the opinion of the minimum required?

My gut says Builders risk and liability, then gather certificates for anyone working on the project. Second part is for how long should you carry after the sale or are you relieved of any risk once its sold?

Thoughts?

Best,

Robert

[Laticia Braxton]

As a Property Manager of both commercial and residential property, be sure all of your contractors have their certificates of insurance sent to you directly from their insurance carriers BEFORE THEY DO ANY WORK AT YOUR PROPERTY and make sure they list your business entity as an additional insured. Make that a standard practice for your contractors, no COI, no work. If your company is not named on the COI, it could potentially leave you exposed to risk, should something happen. You also want the insurance company to send it directly so that you know the COI is valid. There are horror stories of property owners held liable after the contractor screwed up because they were given a fake COI...