Simply Explaining Insurance #81- Flips

Are you are in the business of flipping houses? It is important for you to understand how to insure this risk.

A house that is being purchased, remodeled and resold, requires a different policy than you average homeowners policy or landlord policy. It’s a completely different risk. You may have to write a vacant property policy that allows for a remodel.

If you are doing a complete gut job, you may need to write what is called a builders risk policy. These policies are most commonly written for new construction and are in place while the house is being built. After it’s finished, the policy would transition to a homeowners or landlord policy.

What if you are having someone doing the work for you and hire a general contractor? It’s vital that the GC has a general liability policy in force while they are doing the work. In this case, you may need a vacant policy and the general contractor has their liability policy and you have the coverage you need for the project.

As always, consult with an agent who has experience with these situations. They can build a proper protection plan for you.