Insurance during renovation

[Kuba Bednarz]

Hello BP Community,

I am about to close on a single family property that will need a bit of work before it is ready to be rented: foundation, roof, some electrical, cosmetics including drywall, painting, floors etc. It is my first rehab, and I was caught by a surprise that I can’t get just a standard rental property insurance policy, as rehab is considered too big of a risk. I believe I need to get what a Builder’s Risk insurance, but it seems it only insures the materials not the dwelling.

I hope to get some feedback and what is the best thing to do to ensure proper insurance is in place during the rehab phase that protects the home in case of an unfortunate event. I estimate time to rehab between 2 and 3 months, and property is just outside of Houston, TX.

Thanks in advance.