How do you insure your first couple of rehabs? - Posted by Andrea

Real Estate Investing
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Posted by Terry Alexander on June 19, 2000 at 07:04:54:

Andrea,

I did a search on this website about insurance. I came across your question about insurance which is exactly the same question that I have. I noticed that there were no responses posted to it and that sometimes they email people directly. I was wondering if you would be willing to share some of the responses you received by email, if any. Thank you in advance for all your help.

Thank you,
Terry Alexander

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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.

Thanks,

Andrea