do you need insurance on a flip? - Posted by jay

import · October 30, 2003, 2:44pm

Posted by susVA on October 31, 2003 at 24:05:06:

haha

import · October 30, 2003, 2:44pm

Posted by jay on October 30, 2003 at 15:44:46:

i was wondering if after you fill out the contract with the seller on a wholesell deal(house in need of rehab),if you need to insure it if your planning on flipping to rehaber? or do you make sure the seller will keep insured till you sell for them? thank you in advance for any advice.thanks jay

import · October 30, 2003, 4:20pm

Re: do you need insurance on a flip? - Posted by Eric - GA

Posted by Eric - GA on October 30, 2003 at 17:20:27:

Our standard contract in Georgia protects the buyer…if property is damaged prior to closing, buyer receives all insurance proceeds at closing except those proceeds already used to make repairs that the buyer authorized. Not a bad idea to have it in any contract, really. Assuming we’re all buying for anywhere from 50% to 75% of FMV, the best thing that can happen would be for the property to burn down the day before closing and you just go pick up a fat check. Hey, maybe on the day before closing I could…wait, that’s probably illegal.

Eric - GA

import · October 30, 2003, 3:15pm

Re: do you need insurance on a flip? - Posted by Randy (SD)

Posted by Randy (SD) on October 30, 2003 at 16:15:35:

You can?t insure it? you do not have an ?Insurable Interest?. Merely a contract to purchase does not give you an insurable interest, you must be an owner, lien holder or tenant. So the answer is no.