House Flipping Insurance

[flip_it_fast]

It is very important to have insurance on any home whether you live in the house or have purchased it as a flip.

The problem is, insurance companies don't really like to insure homes that are to be flipped. The reason for this is because homes being flipped are typically vacant. Vacant homes attract vandals. But, just like everything else in life, it can be bought for a price. You may have to pay more for insurance on a house to be flipped but it is better to pay now than to be sorry later.

You can obtain a Builder's Risk Policy. This is insurance precisely for homes that new construction or are being remodeled. These policies cover fire damage, lightning, hail or wind storm, some sort of explosion, aircraft, motor vehicle, smoke, and vandalism. Be aware though, this policy does not cover liability. You need to ask your agent about getting liability coverage.

You need to make sure that the structure is covered and that so are any workers that will be working at the location.

Also, if you hire any subcontractors, you need to make sure they have the proper insurance. If they would happen to be injured at the worksite and they have no insurance, you may be liable.