Insurance
I have a diffculty of getting insurance for a vancant/foreclosure house while it is being rehabbed. Can I just have a rental house insurance? Thanks advice
I have a diffculty of getting insurance for a vancant/foreclosure house while it is being rehabbed. Can I just have a rental house insurance? Thanks advice
Foremost and American Modern/Midland have great contracts for rehab/vacant properties.
Foremost is very expensive in my area.
A property that would normally be $250 per year if occupied was 1400 with Foremost. I expect to pay more for non-occupied, but that was way too much.
You need an all risk remodeler's builders risk policy. So far I've gotten all mine through zurich. They work with insurance agents only.
Just got a quote from Foremost. It costs $4000 per yr. for $187k coverage, $300k liability, 1K ductible. Also got another quote, same coverage except $3400 per yr. a little bit better. Still very expensive. I'd like to look into builder risk insu. but I 'm closing in 2 days. Thanks for your advise.
That is crazy!! Even in the most expensive pricing, $187k of coverage in my area is less than $950. That is no liability coverage--simply property.
I so far have counted on my entity as asset protection.
I ran into a problem with my most recent rehab because I told the insurance co. that the property was listed for sale during the rehab. It cost me $1400 up front for a 6 month policy on a house worth about 160k.
Next time I will forget to mention this or have the insurance in place before listing it.
JohnNH
You are going to get that for which you pay. Inherently, non-owner occupied property is more expensive to insure. Rehabs/vacants are even more (not that I agree with insurers reasoning). Carry higher deductibles!!! $1000 is way too small of a deductible. Frogger, you may want to consider an umbrella policy for your entity. One "bogus" claim could cost you thousands of dollars of defense costs. Also be sure that you are only paying for the time of coverage you need. Many "builders risk" policies refund no premuim on an annual basis, even if you only needed a month or teo of the protection. Find an Agent that understands your exposures!!!
Follow up my previous posting, I ended up going for a commercial property coverage from United National Specialty Ins. Co. #M162071
(Has anyone heard of this co.?)
Coverage: 150K
Premium: $800
Term: 3 mos.
Hope these info is helpful to some of you. Another question though, how do I know if I really be insured before receiving the policy in few weeks? In another words, how do I know it is not a fraud?
my house was forcloser,i went formost route.had agent put lesser value on property i paid 882.which being from maine is high. home up there was 424 a year insured for 146,000.but i guess tx insurance is more.
Kyan,
Make sure you get the binder in writing. Also, check the Department of Insurance website for validity and strength of the company. The lower rate doesn't mean much if they can't pay the (a) claim...
I just bought a "Builders Risk" insurance coverage from Zurich. My property was purchased for $200K and is worth $300K. The annual policy coverage is $1,478.00 annually. My property is located in the suburbs of Chicago.
[addsig]
Word to the wise... do not forgo this insurance, and whatever you do, don't tell your agent it's occupied if it isn't. It there is a claim, and you neglected to mention this it can be denied. Also, please read your homeowners policy... it probably states if property is vacant for 30+ days and you don't notify them, they are not responsible. :-o
I had a policy with United National on my last property.
$512 for $77K coverage (with 300K liability which after reading the description of it probably wasn't worth paying for)-----3 mos.
this is $2000+ annual which after reading the postings seems very high.
I am closing on 2 more on Friday and am going to see what ForeMost quotes (these properties are similar value and within a mile or so of the 1st so should be a good comparison)----but I do realize that this is a very risky policy to write.....
Also had trouble getting insurance after work was done and house to be occupied ---- my partner's State Farm agent wrote the policy $550 a yr for $93K coverage but only due to having all my partner's other insurance business
Made some recent inquiries and so far only an Allstate agent called me back and said he couldn't write it without having all the rest of my business too....
Any ideas for insurance on the repaired/occupied property (we only are doing single families right now)?
State Farm and Allstate also said they'd only write 4 rental policies.
Update from my last post:
Ended up with policies from Scottsdale, a little bit over $400 for 3 mos coverage (of around $70K value)
FYI, my agent told me that Foremost is now requiring 100 Amp service for the property to be eligible (even for Builders Risk coverage)-----I can remember only 1 or 2 properties out of probably 100 I've looked at lately that had 100 Amp service ......upgrade electric is a given on all the properties I've done so seems like its going to get even a little more challenging to get reasonably priced Rehab coverage.
Oh well, I guess I'll just have to start buying them a little cheaper...