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? :-?
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..
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? :-?
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.
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...