Insurance Requirement and Type of Insurance

[Benjamin Jones]

When purchasing a property (as an LLC), since it may not be occupied for 3 - 6 months or so to rehab, what type of ins. is required? Do you ins. it for the existing value or after repair value? An agent advised that a reg. homeowners policy alone would not do She mentioned liability ins. as well. I'm sure there is some type of comprehensive coverage out there. Hypothetical:

Purchase a property for 25k that will require a pretty major rehab. ARV is 125k. Aside from ensuring that the contractor has the appropriate ins, what am I required to have during the rehab period.

[Jason Bott]

@Derek Lacy thanks for the info.

 I never have had a client ask and all my standards do not offer. 

And as you say, unless someone wants to pay for it, which is unlikely, why present it as a reasonable option.