All Forum Posts by: David Green

Does anyone know if insurance will compensate for a delayed closing date or cancelled contract due to a fire?

@Account Closed  thank you so much for your thoughtful response.  I had the impression that the insurance company was doing something non-standard and trying to get out of paying.  From your comments, it sounds like this is not the case.

I had simplified my situation for the sake of this post, my situation is a little more complicated.  

I had some bad tenants and I let them move out early (prior to the fire).  Since I was turning over the property I decided to list it to see if I could get a good price and I did get a signed contract.  Buyers have not backed out (yet), but I have to hold the property for an indeterminate amount of time.  I would have never kept it unoccupied more than a couple months.  It had no vacancies for 5 years.  

Does anyone know if my contract to sell entitles me to any compensation from the insurance company?

My policy states:

• Property Information - Condo rented to others.
• 24 months for loss of use

There was a fire in a Chicago condo that I have been using as a rental unit for 5 years. Insurance is refusing to pay for "loss of use" since I did not have a tenant in place during the actual loss.

Is this common practice? Do you have any advice on how I might challenge their decision?

Any help would be appreciated.

Thanks for the advice guys. I am sending out W9 and lien wavier forms to everyone and I am going to have a conversation with my accountant about all of this.

I am wrapping up my flip and was wondering what type of payment documentation I will need for both legal and tax protection.

The project involved a GC, electrician, plumber, and granite vendor.

Do I need to get waivers from all these guys?

I found this form online that seems to be sufficient.

http://www.cslb.ca.gov/Resources/MechanicsLien/ConditionalWaiverAndReleaseOnFinalPayment.pdf

Also, what do I need for taxes? I read that I might need a W9 filled out by each contractor? Is this mandandory per the IRS?

Thanks

Thanks for the mention @Mindy Jensen.  @Christine Raimbault there are some good meetups in the area you may find useful.  Shoot me a PM if you are interested.

Thanks for all the advice and help on this.  I was under a real time crunch and ended up getting a Vacant Home policy.  This will at least protect me from fire and I can convert it to a renters policy when ready.

I need to do some more research prior to my next deal to pick the appropriate level of insurance.  

Thanks for the advice.  Rehab scope is 2 weeks and 15k.  How would I protect from fire?  Vacant property insurance?

Hi All

I am starting my first flip in the south suburbs of Chicago and I need to get some insurance to protect me during the process.  I think I need a builders risk policy to protect against fire, theft, etc.  I read that a vacant property policy might not protect me from theft (copper).  Does anyone have a recommendation on a good company to use?  I have a couple quotes that are very high.  

$520 for 3 months (whole rate earned)

Many thanks.

Welcome!  Congrats on taking action.  Hope to see you around.