home insurance while rehabbing - Posted by Chris Arrington

import · October 1, 2003, 2:53pm

Posted by Jerry Martin NC on October 01, 2003 at 21:49:29:

Try Nationwide. I have been with them for years and they take all of my rehads.

import · October 1, 2003, 2:53pm

Posted by Chris Arrington on October 01, 2003 at 14:53:30:

I am undertaking a rehab project on a 1930’s family home. The house is currently unoccuppied. The bank is ready to lend the money but I need insurance. The insurance company first quoted ins. at $390 per year then came back and said the underwriters wouldn’t allow it. They referred me to their non standard market that is quoting a six month fee for $1343. How can I find a better policy. The house is in Newport News, Va.

Any help much appreciated. Thanks.

import · October 3, 2003, 1:51pm

Re: home insurance while rehabbing - Posted by Ron (MD)

Posted by Ron (MD) on October 03, 2003 at 13:51:55:

Chris,

Look for an independent agent that represents Zurich insurance. They offer a builder’s risk policy that is designed for rehabbers and should be in line with the first quote you had.

By the way, this coverage is just for property damage. You also need liability coverage in case someone gets hurt on the property.

Ron Guy

import · October 2, 2003, 8:40am

Re: home insurance while rehabbing - Posted by tom

Posted by tom on October 02, 2003 at 08:40:52:

So far i have been able to avoid the builder’s market on my rehabs, but i don’t sell them. most i have done with Farmers on a regular landlord pkg., that is a full replacement value deal. i do most of the work myself and get the exterior looking good within a month or so. i had to go with an ACV policy on one deal because it was pretty bad off.

if you were doing a lot of flip deals this wouldn’t work, but if you are just starting, this would be what i would try for.

best,
tom

import · October 1, 2003, 3:27pm

Re: home insurance while rehabbing - Posted by Erin - detroit

Posted by Erin - detroit on October 01, 2003 at 15:27:03:

The only insurance company I have found for rehabs in Michigan is Foremost. Look for a company that sells Foremost and get a quote from them. It will vary with the cost of the house (the amount of insurance you want), but to give you an idea, it costs me about $1000 per year for about a $20,000 house. It goes up fast, so get it done and get it gone. good luck.
Erin

import · October 1, 2003, 3:16pm

Re: home insurance while rehabbing - Posted by Jay

Posted by Jay on October 01, 2003 at 15:16:47:

Well you are lucky, here in NYC I Was in the same situation, And the best quote I got, was a rehab insurance for $5000.
So I would say if you can come up with the dollars for a Six month policy, do it. but the sooner you finish rehab the sooner you cancel the policy and will get back your money
Good Luck.

import · October 1, 2003, 3:07pm

Re: home insurance while rehabbing - Posted by Darin

Posted by Darin on October 01, 2003 at 15:07:43:

Shop around for a builders risk policy.

import · October 1, 2003, 4:12pm

Re: home insurance while rehabbing - Posted by Chris Arringotn

Posted by Chris Arringotn on October 01, 2003 at 16:12:39:

Thanks,

Foremost says they are not in my area yet.

import · October 1, 2003, 4:14pm

Re: home insurance while rehabbing - Posted by Chris Arrington

Posted by Chris Arrington on October 01, 2003 at 16:14:17:

Thanks. Not sure what that is but I’ll find out.