Insurance For NOO Properties

Can anyone offer me advice on getting insurance for NOO properties.



I am buying properties, rehabbing and selling. Time from purchase to sale averages 3-4 months.



The quotes I am getting for annual coverage (required by the loan people) are very high. Any ideas or recommendations for insurance companies to call for better rates.



What do you guys do?



Thanks;





John Walko

Comments(8)

  • Ebellis26th August, 2005

    I have all of my NOO properties with Westfield Insurance. This is sold thru Independent Insurance agents. I have had really good experiences with this company and their rates have been really www.competitive.I have had to use them for a claim twice and the adjustor was very prompt to attend to the matter and very fair in the settlement.---EB

  • Stockpro9927th August, 2005

    I use Zurich on my poperties 110$ per 100K monthly.

    Most of the other cheaper ones had occupancy restrictions.

  • norrist27th August, 2005

    Hi John,

    If the properties have tenants, you should be able to get a competetive package policy. If they are unocupied, we use American Modern (based in Amelia, OH), Foremost, and Diamond States Insurance.

    Tim

    [ Edited by norrist on Date 08/29/2005 ]

  • groverm27th August, 2005

    I have several NOO properties. They are minimally insured at $100k (because their value is around 70k). Depending on the neighborhood my annual cost is $600 to $700. I just called several insurance companies before closing. What do you consider high insurance costs? Previous claims will also drive your rates up.

  • Stockpro9928th August, 2005

    NOO that are being rehabbed are very expensive to insure. Not telling the agent they are NOO may have a claim disregarded.

    I live in a hotel and could make the claim I intend to occupy, but thought it not worth the hassle or risk and if someone looks real hard they may find I have been selling 3 a month and still disregard.

    That is why I pay the $110.
    [addsig]

  • norrist29th August, 2005

    Good advice, Stockpro. Trying to "cheat" the insurance process can bite you...
    [addsig]

  • jwalko29th August, 2005

    Thanks all for the replies.

    When I said expensive, the quotes I was getting were in teh $1,500 range for annual coverage. I asked my lender about going quarterly, to save some cost, but they want an annual.

    I am wondering if I should stop calling the property NOO. It will only be NOO for about 1-2 months during the rehab. I will then either sell it or rent it out. In checking with the agent I have my current residence insured with, he was able to work out an agreemnt for me as long as the property will be inhabited within 90 days.

    John

  • norrist29th August, 2005

    Many package policies give you 30 or more days on newly acquired properties of automatic coverage...

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