Posted by John Corey on March 30, 2006 at 04:03:51:
The agent is more or less accurate.
Insurance companies do not like rehab projects of property where it is vacant for longer than 30 days. More so when the area is suffering from higher crime, etc. The problem is the insurance company sees higher claims when the property is vacant (break-ins, damage from water leaks that no one notices, etc).
The decision to write the insurance will vary between insurance companies.
You can get specific insurance for a property that is being refurbished. It can cost about 4x the normal rates. The policy is a builder’s policy or similar. They charge more because they expect higher claims.
Be very careful if someone offers to write a policy and it does not match the present situation. Just because an agent wrote it does not mean the claim will be paid if you have to submit a claim later. The insurance company needs to be told what is going on so they know what risks they are providing coverage for.