All Forum Posts by: Ryan Thomas

@Pablo Aguayo

I’m a commercial insurance agent. Ruth is right, you will want to use an independent insurance brokerage that has access to many different carriers. You’ll want an agent that has experience writing larger properties than 4-plexs anyway. Happy to answer any questions for you.

@David M.

Just to add; If the cost of the flip is mostly cosmetic and under 10% of the purchase price of property than a vacant policy would suffice.

@Emillio Henry

Hey Emilio, I’m a commercial insurance agent. Builders risks can be 3-6 month terms. It’s higher exposure for theft and vandalism too so make sure you have proper security measures in force. My house got robbed during a flip. Make sure the contractor will carry the same GL limits you have ($1M/$2M) and is willing to provide certificates listing you as an AI. Sometimes carriers even require the contractors loss runs so make sure they have those handy at the least. Let me know if you have any questions!

@Will Parker

Hey Will, I’m a commercial insurance agent. Rarely people choose not to have insurance or self insure. They would have to own the property out right with no mortgage as lenders always require insurance. You’re good to move forward! New acquisitions are new to you and very rarely do carriers need seller loss runs. Let me know if you have any questions!

@Peter Morgan

Hey Peter, I’m a commercial agent. Renewals have been pretty high lately. It depends where your property is located. We have been pretty minimal in Arizona but places like Texas and Florida are a minimum 15% with no claims. You have to look at it from the carriers perspective. The U.S. has been absolutely slammed with losses this year. Wildfires everywhere, hurricanes and crazy tornadoes. This cost carriers billions and their response is to raise rates everywhere including areas with less exposure. If carriers aren’t profitable, we all end up paying more.

Hey Simon,

I'm a commercial insurance agent. Texas has high wind/hurricane exposure in the south and high convection storm exposure in the north. Having said that, please use a independent insurance brokerage as you will need access to excess and surplus lines markets. Strata has been the big player their for a while, but many other carriers are coming in more competitive lately.

@Ed Moran

Hey Ed,

I’m a commercial insurance agent. AmRisk small market is a great carrier in Florida but you will need to use an independent insurance brokerage to access them. I’m happy to provide more info if needed.

@Michinori Kaneko

Hey Michinori,

Just ask the seller for his insurance dec pages so you can factor it in the cost. Flood insurance is no fun, I don’t like to write it but it’s a common requirement in flood zones.

@Kevin Mahoney

Hey Kevin,

I got my AZ real estate license specifically for my own investments and friends/family. I do commercial insurance full time. 2 deals a year can be worth it. 1 deal a year maybe not. A few things to note, my first deal I had to give up all my commission to have the sellers (flippers/realtors) agree to the lower appraised price. It can be hard to find help, once your licensed you have to see who can work with you at the brokerage to make each transaction a smooth process, or even hire a transaction manager for a portion of commission. This was my problem but I’m more familiar now and can do my deals solo. You can write off taxes too so find a good tax lawyer. I think there are benefits, but working with clients can be a nightmare if you try it out with little experience. Your own deals you are good to go! Hope this helps! Let me know if you have any questions!

@Emiton Alves

Hey Emiton, I’m a commercial insurance agent who specializes in multi family. Most carriers are A rated or better and if your using a conventional loan then the lender will make sure coverage is compliant anyway. There are many bells and whistles on policies that you simply won’t ever use, but there’s a few key points that has been mentioned before such as premium, 100% replacement cost with no co-insurance, deductibles and more. The most important thing is to use an independent insurance brokerage with an agent who is knowledgeable and responsive. It’s easier for me to discuss specific coverages over the phone, but I email the details for reference as well. Let me know if you have any questions!