How to protect a house I'm rehabbing? - Posted by jason

Posted by Matt (MPD) IL on April 02, 2006 at 17:23:57:

From what I understand about our policies, no, they don’t cover those kinds of losses. One would need to carry a special policy to cover tools etc. Builders risk will cover liability and loss of structure.

How to protect a house I’m rehabbing? - Posted by jason

Posted by jason on April 01, 2006 at 08:49:25:

Just curious what rehabbers do in the not-so-good neighboirhoods. One of the basement window\s (a POS storm window)was kicked in this morning. Luckily, our stuff wasn’t inside, as we havent taken possession yet.

I’m thinking :

A) glass blcok windows (that’s on the agenda anyhow)

B) Window covering of some sort on every window

c)Of course, new locks,deadbolts

d) Some lights on timers

That’s all I’ve got! Any more suggestions?

Re: How to protect a house I’m rehabbing? - Posted by Chris in FL

Posted by Chris in FL on April 05, 2006 at 16:01:07:

I have done a few in tough neighborhoods, and have been pretty fortunate following these few simple, mostly obvious rules:

  1. I do this anyhow, but fix it fast, get it done, and get it moved (obvious, but if you take six months, you run a lot more risk; I have never taken more than 3-4 weeks to rehab one of these kind, start to finish, and move it or fill it). Also, rehabbing that fast means there are people there working most of the time.
  2. Don’t leave valuables around.
  3. Immediate new locks, deadbolts, secure windows, etc. If you make it obvious you mean business, they generally leave you alone (they want the easiest possible target; that shouldn’t be you).
  4. I don’t go overboard on the security because it is tough to recoup extra investment in those areas, plus it stresses the “this is a bad neighborhood” when you show the house and it has bars on the windows (you get the idea).
  5. Take necessary precautions - don’t put yourself in harm’s way over a few dollars.
  6. I would be careful about the killer dog idea; you might have a lawsuit bigger than your profits if you aren’t (careful).
  7. Lastly, and most importantly, make your money, invest proceeds wisely, and quickly reach a point where you don’t have to “risk life and limb” to invest any more (move up to better areas).
    Simple and obvious, but these are the things that got me safely and quickly from struggling newbie to experienced, successful investor.
    Best wishes!

Dave’s Top 10 List… - Posted by David Krulac

Posted by David Krulac on April 01, 2006 at 14:09:42:

  1. always lock the doors, maybe even barricade, nail shut etc. secondary doors.

  2. never leave tools and or pilferable material there overnight, unless yuo don’t care if its gone.

  3. curatins at every window.

  4. lights and radio on timers, tune radio to talk radio

  5. install burglar alarm first use during renovation, then use as a selling point when marketing.

  6. install smoke detectors

  7. notify police that the house is empty but you are during work there.

  8. talk to neighbors, particularly the people home during the day and night who already know everything going on in the neighborhood. perhaps a gift will help a neighbor be even more vigilant and call you if anything is amiss.

  9. leave a big a$$ vicous dog in the house overnight. a dobe, shepard, pit bull etc. a mean junk yard dog, who knows the meaning of ripping limb from limb.

  10. move into the house yorself or a trust partner, worker, friend. offer free rent just to keep an eye on things

  11. (bonus idea) park different cars in the driveway every night. same car is same spot day after days signals like a neon light “rob me”.

Re: How to protect a house I’m rehabbing? - Posted by Darren

Posted by Darren on April 01, 2006 at 10:22:42:

Next time, buy a cheap and loud battery powered alarm, set it off and then leave for about 5 minutes. Come back, turn it off and then go to the neighbors to apologize. Ask for their help in looking out for suspicious early morning/late night activity. The scum bag is likely someone with eyes on the property that lives close by, looking for an easy score. Neighbors talk. Secondly, install high powered lighting and run it constantly. Third, contact the police and ask them to include your house as part of their patrol. Explain how you are improving the street. They might cooperate. Lastly, position some ‘DANGER’ yellow tape around the perimeter. May or may not work. Criminals are mostly dumb and lazy cowards. You want them to move on to an easier score.

Re: How to protect a house I’m rehabbing? - Posted by Sean W

Posted by Sean W on April 01, 2006 at 09:29:27:

the right insurance . don’t leave tools there. Flipped a house two years ago got every tool ripped off Broke some windows too($4500 just tools) honeowners or landlord didn’t cover it said it was my bussines ouch! needed seperate policy. moved 5 rentals still didn’t help. New ins. said same thing only up front!

Re: How to protect a house I’m rehabbing? - Posted by Milo Brom

Posted by Milo Brom on April 03, 2006 at 06:07:38:

Know people move in new home. Next day friend come over to stay night. Park car in garage. Car has alarm. Accident he make car alarm sound. He run back in through inside door to find keys to turn off alarm. Long time pass while he hunt for keys.

One or two days later, while new people walking down street, neighbor stops them to say hello. And says, “you are the people in the house with the alarm aren’t you”.

The home was next to bad area. They never have troubles ever.

Milo Brom

Re: How to protect a house I’m rehabbing? - Posted by jason

Posted by jason on April 01, 2006 at 09:43:35:

Good point. Never thought about it, but I will specify to the ins company.

What type of ins would this be then…part of the business insurance? I can probably check with my current business insurance and see if my tools are covered, though I dont think they are.

What’s a good insurance to have then, on a repo? I’m getting ready to call around, I cant imagine it will cost much for a 13k purchase price, 10k rehab, and 45-50k retail pricd home.

Re: How to protect a house I’m rehabbing? - Posted by Matt (MPD) IL

Posted by Matt (MPD) IL on April 02, 2006 at 15:11:46:

Builders risk insurance will run somewhere in the neighborhood of 1200-1500 every 3 months. Make sure you have the right insurance or you’re just tossing money out the window. If your policy doesn’t cover you for the situation or type of claim you have it’s just a loss.
Also, builders risk insurance from my experience is “fully earned” meaning you pay for the entire policy period with no pro-rations or refunds regardless if you get it onto other insurance before the period lapses. Check with your own insurance broker for your area.
Don’t be fooled by a local agent saying the big SF, AS, CC, type insurance companies will cover you on a rehab, they won’t. You need a specialized insurance policy to cover what you’re doing.

Re: How to protect a house I’m rehabbing? - Posted by Natalie-VA

Posted by Natalie-VA on April 02, 2006 at 15:47:17:

Just to add a little bit, it’s my understanding that Builder’s Risk has no liability attached to it and would not cover his loss of tools. Definitely double-check me on that.