Insurance On Rehabs??
Have any of you had problems keeping your property insured while it is vacant and undergoing rehab?
Have any of you had problems keeping your property insured while it is vacant and undergoing rehab?
I just got quoted $3500 to insure a rehab I am closing on in 2 weeks. Since I did conventional financing they require 12 months prepaid. There will an additional 3 months needed at closing for escrow. It appears that some of it will be refundable but what a sticker shock I was not expecting. Any ideas how to get around this short of moving in??
FInd an Agency that represents Foremost Insurance. They have one of the better rehab/vacant policies. Don't know if they operate in all states, though...
Tim
Ditto on the Foremost through an independent agent. I am currently going through a situation where I closed on a piece of property end of November and took out a 6 month non-refundable policy for the vacant house while in rehab. $1800.00 and it is due to lapse end of May. I found the independent agent who was able to write me a policy based on 12 month but billable on a monthly basis and you only pay for the months you need. BIG savings! So, fgo to Foremost Insurance site and search to see if the write in your state. If so, "This must be your lucky Day"
Good luck
Dave
Bought a Blanket policy through an Investor Friendly Insurance brokerage last Dec.(picked up at a monthly county investors meeting) for about 500.00 + didnt use it until this month on two new properties(couldnt use on other properties due to their location) Covers hazard on anything I buy, through Lloyds of London. And as I am here in Fla. lender also requires 1 yr. paid advance on Wind, so got the policy through Citizens www.Prop.Ins. for 1200.00 prorated to the date of close.
Insurance is expensive for unoccupied rehabs, but there are some better ways to go.
SG