property ins on rehabs.

Closing on June 14th 1st deal. Very excited until I started looking for ins. I paid cash for this property out of my pocket. I just want a policy for actual cash value…not what they are wanting to sell me total replacement.

The building was built in 1906 so its very old,needs alot of work which is going to take time,I dont want to pay 4x more for insurance with a complete rebuild policy.
Just looking to cover my cash investment.

Does anyone know of an insurance agent in Florida that likes to make people happy…not corporations selling homeowners more insurance then they want.

Any insurance info would be helpful.

American family, State Farm, Progressive, and Foremost.


When no one else was insuring here in Northern Louisiana, Foremost was the first that would…I’m with Nate, try them.


I am also closing on my 1st rehab house soon and have only spoken to a couple agents. The first, who is the agent for my current home, wouldn’t underwrite a short-term policy for a NOO property. So she referred me to another agent, who quoted me $912 for the 1st 3 months, fully earned. 3 month extensions can be purchased after the initial 3 months with a prorated refund available. Me being new to the field, I understand why the policy is high priced, but I was curious what types of rates others have encountered. The rehab property is in the northern suburbs of Illinois.

Also, the agent mentioned that many lenders won’t accept a short-term policy, only pre-paid full year policies. Is this often the case? She did suggest Foremost might be one option if a full year policy is required by the lender.

As always, thanks in advance for your responses.


Tell your agent that she’s on crack and to hit the bricks. My policy was in the 425 range and I think a person can even do better. Open the yellow pages and start dialing. My policy is for one year but if I sell it or rent it I can switch to a “normal” policy for less money and move on.


Thanks for the reply Nate.

Did you completely forego looking into short-term policies and go straight for a one year? The reason I got a quote for a short-term policy was because I’m working on a short-term project. Can I just forget about a short-term policy, and the high cost that comes with it, and request a one year policy?

I went into a straight one year policy and never looked at short term. My rehab took about 3 months for completion so if sold it quickly then my insurance company was guaranteed 4 months of payments. I could then quit that insurance and get a reimbursement check if I had anything coming back. Shoot for a one year policy and see how the quotes come in. Like I said you can always cancel the insurance at anytime.