Posted by Jim M on May 25, 2006 at 02:30:50:
John08,
I’m in Tacoma doing the same thing. Check out Farmers Insurance, Canyon Rd office, ask for Tricia. Last time around her quoute was half what you mention.
Vacant House Insurance - Tacoma, WA? - Posted by John08
Posted by John08 on May 22, 2006 at 02:32:16:
I will be closing on a house next week. I am not sure if I will sell it as is, prehab or full blown rehab yet? But I am sure it will be vacant until it sells. What type of insurance should I get? My normal insurance agent quoted me nearly 2k and another would not do vacant homes. I am scared to use rental insurance since it will be vacant for a while, though I have done this in the past. Anyone in the Tacoma area have a good agent you can refer me to?
Re: Vacant House Insurance - Tacoma, WA? - Posted by John Corey
Posted by John Corey on May 22, 2006 at 06:14:03:
Vacant property insurance (similar or the same as construction insurance) has a high risk to the insurance company. The quote you were given is what I would have expected.
Note that if you use the wrong policy you are in default of your loan agreement and can be denied any claims made. Hence you can lose everything and then land in foreclosure.
It is a cost of being a rehab investor that many fail to understand. Traditional rental policies are only useful if the unit is vacant for 30 days or less and has no major defects. Even if the agent sells you a traditional policy they can back out later or just deny the claim. The agent might be liable in that case.
Where in Tacoma is the property. I have family in the area.
John Corey
Oregon