I first posted this on the asset protection/legal board, but perhaps its better here:
I am about to begin flipping/rehabbing homes in SC and/or Ohio. I have set up an LLC for this purpose. What I don’t know is how to obtain insurance for these properties while they are being rehabbed and are vacant? Any advice is appreciated. Also if anyone has any good insurance contacts, I’d welcome that. My regular insurance company is USAA and I don’t think they get involved at all with corporations - only individuals.
What a good question. My homes don’t move into my LLC until the rehab is complete and I’ve financed the property (I pay cash for purchase and repairs). I’m not an insurance broker so I don’t know if the way the property is held will affect the information below.
I purchase a vacant home policy – they are VERY expensive and are hard to come by (very few companies will write them). They don’t cover very much (fire and vandalism) and come with a high deductible. They are purchased on a quarter by quarter basis. Try to find one that gives you a refund for the unused term should you sell/rent prior to the quarter running out. The policy I just purchased was $772 for the quarter with a $1,000 deductible.
If you are in Georgia, I’m happy to give you my broker’s name. She doesn’t know much for outside of this state though. Insurance has really gone up and these policies are no exception.
I have insured properties as a 2nd home during rehab becuase it is not truly vacant since you (or someone) will be there frequently; just not living there.
I just get a vacant dwelling builders risk policy through zurich. It was a 1k deductible, and the full year is earned, but it was only $350 for one year, the next best thing was 1200 or so. Good Luck,