Home Owners Insurance

General Real Estate Investing
1

I am new to rehabbing homes, and was wondering what others are doing in terms of Home Owners insurance.

I am from florida, and we are finding that for vacant homes there is few places we can get home owners insurance from, and if you tell them you are renovating the home, they will not even write you a policy.

I would like to know how this is handled if the home is owned by a person, and/or an LLC.

Any guidance would be greatly appreciated.

Chris

2

Howdy Chris:

Ask your agents for builders risk policy. You may even call some home builders and find out who they use. Itb is like you say very little of the companies write it bhut they are out there.

3

One question I was wondering about, if you are an LLC, is there any kind of blanket insurance you can get which would cover any and all properties that you might purchase. Instead of having to go get insurance on each and every property you purchase?

4

Will blanket insurance cover any type of injuries tenants may have?

Do you guys buy blanket insurance for your rental properties or does your rental agreement indicate that you are not responsible for any type of injuries occurred on your retal property?

Thanks,
JW

5

<<Do you guys buy blanket insurance for your rental properties or does your rental agreement indicate that you are not responsible for any type of injuries occurred on your retal property?>>

Both. I am not convinced that a rental agreement saying that the owner is not responsible for injuries that a tenant may sustain on the property will stand up in court, especially if the tenant’s lawyer could somehow contort negligence into the equation and the judge/jury buys into it. My lease agreement has the verbiage and I have insurance.

Disclaimer: I am not a lawyer and don’t play one on TV. This is my opinion and not necessarily a good one – but, better safe than sorry!

6

I am not talking about rental properties. I am talking about flip homes that you rehab then sell. During the rehab period what kind and where can you get home owners insurance.

As for my reference to “blank” type insurance, I know that in many industries there are these types of insurances, such as in the consulting industry they have an E&O (Errors and ommissions) which covers all persons you hire. I was just wondering is there was something out there for home owners insurance, or what creative ways people are using to find/secure insurance on homes they are trying to flip.

7

Thanks, Keith.

8

TedJr answered your question about flips, eglwolf.

A subsequent question was asked about rental properties (and, yes, subsequent questions are allowed…)

Keith

9

i have carried rehab property under a “second home”/vacation home policy. My insurance agent was the one who recommended this idea when I explained what I was doing. This deals with the issue that the property is vacant most of the time.