I just want to make sure I know the right types of insurance I need as an investor. Please correct me if I’m wrong:
During the rehab: Builders Risk
After Rehab, While on Market: Vacancy Insurance
While Rented Out: Rental Insurance
It is my understanding that builder’s risk is only available for new construction and can continue in force while the property is vacant.
A rental dwelling policy is what you purchase for your rental property.
Two years ago, I bought a couple of rehab properties in NC and could not get them insured because the property did not qualify for builder’s risk and I did not have the property in service as a rental. An independent insurance agent told me about the state’s mutual insurance program that would be available me on this property. The insurance was basically a loss policy with no liability.
You might check to see if your state also has an insurance pool that would insure your rehab property.