How do you insure your first couple of rehabs? - Posted by Andrea
Posted by Andrea on February 15, 2000 at 12:09:29:
I was wondering how folks go about insuring the first couple of rehabs they did. I am going to close on my very first rehab deal in two weeks and I am in the process of trying to get insurnace to cover the rehab period of 3-4 weeks.
I can get insurance if I say I am going to live there and also if I say that it is going to be a rental. I do not want to lie and mislead anyone, and I have been told that no insurer would want to insure a property for 2-3 months.
I know that some of the investors who have multiple properties can get short-term insurance, because they have a large portfolio of properties with an insurer and they have built that relationship. I will be there in a short while.
I was told that I could get a builder’s risk rider, but I was also told that getting that would be overkill for a short-term rehab without any structural work being done.
I would appreciate any help on this one.