Gettin An Insurence Policy For A Quick Flip Rehab?

im about to get my first property in San Diego to fix and flip. i need to get insurence for the home but to get a policy, insurence companies penalize people for terminating a policy early , called "short rate" like AAA, state farm . i plan on holding for one week. what companies will insure a quick flip? :-?

Comments(4)

  • loon10th May, 2004

    I have my homeowner's insurance through Farmers, I just talked to my agent today, and he's gonna insure two places I just picked up, and he said even if I cancel in two days, I'll receive a full refund minus the two days pro rata. Of course, he wouldn't be very happy about it, which could affect his interest in servicing me for the next deals..

  • johnstaley11th May, 2004

    so let me get this straight , the only way to do this on a continues bases is to bounce aroun to different agents and insurence companies? is this really a creative way of doing things? :-?

  • jam20011th May, 2004

    Usually, lenders require Builders Risk insurance. It usually comes in either 6 or 12 month chunks, paid up front. Even if you only need it two weeks, you still pay for 6 months, and get no refund, is how I've seen it work.

  • norrist10th August, 2004

    Most companies that will insure the property will charge a "minimum earned premium" which pretty much covers their underwriting costs, etc... even if you only keep it 2 days...

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