Help! I Need Insurance On A Renovated House.
Can somebody help me?
I have totally renovated property, but nobody wants to give me regular home owner's insurance, since it is not occupied yet. Do you have any suggestions? 
Is this to be your primary residence or not? Either way I do not know of a single company that will insure it under a home owners policy until you actually occupy the property. Search around for insurers of investment property.
Chris[ Edited by rogersce on Date 04/02/2004 ]
Easy, move into it on a temporary basis, as a second home, until you do with it what your intend doing. Take a few clothes and such over and put into the house . Make em happy ;-}
ozzie[ Edited by ozzie on Date 03/26/2004 ]
Actually, you should not have any trouble if you go through an indpendent agent who can look at several insurers. The problem that you will run into is that the rate is doubled if it is vacant, and nonrefundable. Typically, they will charge you the equivalent of 6 months rent for 3 months of coverage. Even if you get a tenant after one week, they will not refund any of the difference. You could also try Foremost who supposedly charges a lot, but the premium is refundable. I haven't used Foremost so I can't give you anymore info on them.
I'd get the proper coverage before trying to pass of the property as your "second home". If a claim occurs and their is any way the insurer can get out of paying the claim...they will...
The insurance game is nothing to take lightly. Perform a level of due diligence, check with the local RE Investors club and find an insurance broker that can help. Your asset must be protected properly. (With summer approaching what if the neighborhood kids set the vacant house on fire?)
Eric & Rosa
[addsig]
What you need is an "Unsold Dwelling Policy." It is very expensive. I keep my Builders Risk insurance policy in place on my rehabs until I sell the property. They have no idea whether or not I am completely finished remodeling the home or not. However, I have not yet had a claim.
I turn on the utilities, install some shades. and then I move in on a temporary basis until that great moment when the house is sold. My wants are simple, a bed, a brook, a book of verse, fully illustrated, a small computer a telephone. A welcome relief from television. Ryan Seacrest, yip, at least he finaly shaved. What happened to Chandu the Magician? Or Mert and Marge?
Of course on all the lower cost homes we convert the garages into a single unit with bath. So I occupy that.
Lucius
I wouldn't push the envelope to "fake" a move-in. Not only could you get a denied claim, but also a felony charge (insurance fraud). Just my 2 cents...
You need insurance and do not make up a story. You could be the one with this story, "claim not paid due to fraud on application. It always amazes me why people would risk their investment like that.
Do you have a renter?
Do you have a seller?
IIf you have someone interested even if it is two months down the road, let them know.
I closed on a property in January, and because of the terrible weather the house is not completely fixed up. Well i received a phone call from the insurance company asking me if the property was vacant. I explained to them it is being gutted and renovated, they told fine and did not cancel the policy.
They do not like vacant properties. The bad truth is better than a good lie
Lori
[addsig]
Hey... although I have not as of yet joined the ranks as a "owner investor" what you can do and is this.
Get a non owner occupied ins. policy.
1) Rent or allow someone to live in the property on a month to month basis. If memory serves me correctly this is called tenant in sufferance .
2) This month to month basis will keep out the vandals and whoever else.
3) It "should satisify" the occupied aspect of the ins policy.
4) Finish the re-hab or whatever else is going on.
5) Just make sure that the " House sitter" understands what you are doing and what is going on! Occupied ins premiums are always cheaper then property's being vacant.
Hope this semi out of the box thought helps.
Kerry
Regarding the above posts. It is possible to get a non owner occupied policy if it will be vacant while you rehab? Just more expensive? It seems like it would be hard to rent while undergoing renovations... I am looking to insure a property I will start rehabbing the beginning of June. I prefer it to be empty until the renovations are complete.
You can get a non owner occupied vacant dwelling policy while the rehab is being completed. Mine cost me $300.00 for 90 days. Once the tenant moves in convert it ro a regular poilicy.
Tim
WhenI purchase a house for rehab I buy a 6 month "builders risk" policy with $500,000 liability. It is for non owner occupied, vacant property. it costs approximately $600.The first three months are non-refundable but the last three are prorated.
I do it every time, with out hesitation, and without trying to figure out when will the improvements be complete, when can I put the ad int he paper, when will someone sign the lease, .......
Brenda
fair plan will cover you if you board up the doors and windows on the first floor, but you said you're already done with the rehab and this won't be enticing to a buyer ...
insurance agents will find you someone no-nonsense who will "probably just drive by" when they write the policy. possibly even set up a time when you'll be there to see that you're in there. not as reputable as a "state farm" but at least you'll be covered.
Hi Brenda,
What is the main difference between a standard homeowner's policy for non owner occupied and a Builder's risk policy. Does it have different provisions?