The Complete Fix-and-Flip Insurance Strategy
Investor Friendly Insurance
2/1/2024
15 min
Master the insurance requirements for fix-and-flip projects, from acquisition through renovation to sale. Learn builders risk, contractor liability, and coverage transitions.
Key Takeaways
- ✓Insurance needs change throughout the flip project lifecycle
- ✓Builders risk is primary coverage during renovation
- ✓Contractor insurance verification is critical
- ✓Project timeline directly impacts insurance costs
Insurance Timeline for Fix-and-Flip Projects
Insurance needs change throughout a fix-and-flip project. At acquisition, you need property insurance. During renovation, builders risk becomes primary. Upon completion, you need landlord or sale preparation coverage. Each phase requires different coverage.
Builders Risk Insurance Essentials
Builders risk covers properties under construction from the first dollar of loss. It covers the building structure, materials on site, and temporary structures. This is your primary coverage during renovation work.
Contractor Liability and Coverage
Verify contractors carry their own liability insurance. Require proof of coverage. Consider adding contractors as additional insureds. Understand what your policy covers if a contractor causes damage or injury.
Cost Control Strategies
Builders risk costs vary by project complexity and timeline. Longer projects cost more. Phased renovations may need coverage adjustments. Planning efficient timelines reduces insurance costs.
Related Insurance Types
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