Insurance for SFH bought in a S corporation

[Loren Becker]

Hi,

I am purchasing a SFH in my S corporation to flip.

1. What type of insurance do I need and any recommendation on insurance companies?

2. Do you purchase the policy during escrow or after escrow is closed? 

Thank you,

Loren

[Gerald Grinter]

@Loren Becker, For a flip purchased in a S Corp I would recommend a short term Builders Risk poilicy. You can get them in 3,6,9 and 12 month policies. Most main street companies don't like to insure corporations especially in a course of construction. You would purchase the policy effective on the closing date. 

I'll send you a PM if you'd like to talk more. 

[John Mocker]

Loren,

Gerald is correct about the Builders Risk.  If you can get a company to do a 12 mos. policy which can be cancelled for a refund if you finish earlier, that is what I usually recommend. 

You also need Liability coverage for the property and possibly the project (if you self GC).   

If you are hiring the people working on the project, consult your agent on Workers Comp.  If they are contractors, require proof of coverage.  If they do not have coverage, depending on the details of who is directing the work, how they are paid, etc., you may need to purchase coverage.

[Loren Becker]

@Gerald Grinter

Hi Gerald,

Thank you for helping out on this subject.

I will reach out to you today for further information.

Appreciate your help,

Loren

[Loren Becker]

@John Mocker

Hi John,

Thank you for the information.

appreciate your help,

Loren