Insurance On Home I Will Be Flipping

mumphis

Hi,

I am purchasing a home in upstate NY with the intention of reselling it in 2-4 months. Insurance companies are balking about writing this type of insurance.

Does anyone have a suggested insurance company they work with for this type of situation.

Thanks,
Mumphis

Humble Abode

How many insurance companies have you gone to? Are you a contractor? Do you have insurance through your contracting company?

Teetorbilt

I buy it for a year, put down the initial payment and go monthly. When the house sells, you can pass it on to the new owner or call the agent and inform him that you got an offer that was too good to pass up.
Don't use YOUR agent for this, there are flyback ins. co's. everywhere.

Humble Abode

What do you mean by flyback insurance companies? I am not familiar with this term.

Mike Finley

First off, talk to independent brokers only, captive insurance agent that only write's for one company (ie State Farm agent) won't be of any use.

There are a few ways to go about this.

1) Vacant property remodeler's builders risk insurance policy. An independent agency can obtain this insurance through Zuirch Direct, Foremost, Scottsdale or Accord. Pretty expensive, but it is exactly what you are trying to do.

2) Insurance for a non-owner occupied rental property. You are buying the property with the intentions of fixing it up and renting it out. About 4 months into the fix-up process you are going to change your mind and sell it instead. Nothing illegal, people change their minds all the time with what they are going to do. House burns down you will get a check. However, if each time you buy a house for a rental property and keep changing your mind and end up selling it and have a history of doing this 3 or 4 times the odds are the house burns down, you aren't going to get a check. People change their minds once or twice but do this 10 times and it doesn't take a genius to figure out what is going on and deny your claim. Do expect to lose your Insurance premium paid in advance when you sell the house.

Do not lie to the insurance agent that it will be occupied or anything like that, because you are buying air in that case, all claims will be denied when they find out the truth.

Teetorbilt

It's the guys that will insure anybody for anything. Cheapo's.
'Had accidents?, No credit? Too many claims? Come on down to International Fred's Ins. Co.'.
The actual term is Southern and originally was applied to folks who didn't do their jobs too well. You always had to 'fly back' and get it fixed again. Today it applies to people of low repute.

Humble Abode

I see, thank you. I should have just gotten out my southern to english dictionary