Rehab Insurance - HELP
Is there any insurance product or carrier that anybody knows of that works for rehabs? I have bought 3 so far and every time it is a struggle to even find anybody that will insure it. When I do find a company I am in the price range of $2500 for $100K coverage with a $2500 deductible (fire only of course) on a property that is worth $50K. Many of them don’t even include liability and when I try to get an umbrella liability policy they look at me like I have seven heads because I have high risk properties. [ Edited by bedwards1000 on Date 08/02/2004 ]
You want "Builders Risk" insurance. Call an independent agent and tell'em you're rehabbing, and want Builders Risk on your property.... It's pretty common, and not that expensive. I think I paid $1,200.00 for a year for 100k...
Thanks. I did try that and was quoted $1000-$1250 for 6 months for 60K coverage with no liability so it turned me in a new direction but I'll investigate further. I was also told that my property might not meet underwriting. Is there a carrier that you can recommend that I might try?
Any additional information would be helpful. I picture myself owning 2-3 rehabs at different stages at a time and would like to have an umberlla policy in effect and an easy way to add another one without people asking me what kind of dogs I own.
I think it was Foremost that I used, check out http://www.foremost.com and see what they've got...
what about regular home owners incurance? how are you taking the title???
[addsig]
I always buy Zurich policies. There is a minimum premium of $350 and a max of $480 I believe.
There is no liability coverage with builders risk policies. I have not purchased anything for liability but I should probably look into it further.
Foremost and American Modern Home/Midland both have vacant and rehab package (property and liability included). Unlike the true "builder's risk", their contracts were designed for the REI...pro-rated premium refunds, pay plans, and even short minimum earned premium periods.
Tim
Foremost and American Modern Home/Midland both have vacant and rehab package (property and liability included). Unlike the true "builder's risk", their contracts were designed for the REI...pro-rated premium refunds, pay plans, and even short minimum earned premium periods.
Tim
Thanks for all the help. Regular homeowners doesn't work unless you lie and say you are going to live there and then you would probably have an uphill battle if you ever did have a loss. Liability is the thing that scares me most so I need some coverage there. If the house burned flat I would still have a nice lot with well & septic (and the houses I buy don't start as much more than that) but if somebody wanted to push a liability lawsuite everything I own is up for grabs and I don't want that.
I ended up with a Formost basics 1 policy. It is relativly expensive but they let me buy an ACV policy which includes liability for a property that was vacent and being rehabbed. $250 min earned premium, $1350/year for 50K & 300K liability. That was better than the $2300 for the same policy with 104K replacement that I was quoted before.
If anybody has any further insite I am still interested. I think insurance is probably one of the bigger issues we face.
Foremost is the best we've come across for your scenario...
Help!
Unfortunately Foremost is not licensed yet in Maryland and the American Modern Home agent that I spoke with uses another company.
Any other leads for good rehabber's insurance?
CCinvestor
The American Modern Insurance Group writes insurance in all 50 states, so it should not be difficult to find a local agent to help you. Try calling them at (800) 759-9008 and inquire about agents in your area. They should give you a list of 5 or so close to you. Then, the choice is up to you. Interview them and pick the one that seems most credible and most helpful.
Good luck!
CCinvestor
The American Modern Insurance Group writes insurance in all 50 states, so it should not be difficult to find a local agent to help you. Try calling them at (800) 759-9008 and inquire about agents in your area. They should give you a list of 5 or so close to you. Then, the choice is up to you. Interview them and pick the one that seems most credible and most helpful.
Good luck!
I received insurance today from Allstate for a rehab property. 12 months limited liability protection for $417.
dfund[ Edited by dfund on Date 10/04/2004 ]
What does limited liability mean? How limited?
Thanks
Does that Allstate policy include anything other than liability? Limited liability only for $417 doesn’t sound like a screaming deal to me. If it does include some kind of builders risk coverage what type of product is it and can I get it?