Insurance for rehabs - Posted by IB (NJ)

Posted by Tarheel T on June 29, 2001 at 16:32:39:

Out of curiosity, have you ever had a large claim?
And how long have you been investing?
And what do you think about self insuring for fire for 2-3 months while fixing a home?
Tracy Thompson

Insurance for rehabs - Posted by IB (NJ)

Posted by IB (NJ) on June 29, 2001 at 07:33:26:

I’m trying to purchase a rehab using a hard money lender. But the lender is requiring that I get an “all risk” property insurance policy on the place. This is a problem because the house is vacant. And as you guys/gals may or may not know, it’s expensive getting a policy like this on a vacant piece of property. I’m going to try Zurich’s. Does anyone else have any other ideas?

I’m used to buying with my cash and simply using a basic fire policy. This is the first property I’m buying using OPM.

Re: Insurance for rehabs - Posted by JPiper

Posted by JPiper on June 29, 2001 at 10:51:06:

What’s “all risk”??? In general I think Zurich is the best policy out there for rehabs.

Not sure what a “basic fire policy” is either. But if the house is vacant a basic policy probably won’t cover you, even if you have the insurance in place.

You can get vacant house policies through Lloyds, available through brokers. But it doesn’t cover as well as Zurich in my view, and is more expensive.

JPiper

I’m having trouble finding - Posted by IB (NJ)

Posted by IB (NJ) on July 03, 2001 at 11:53:44:

an agent that deals with Zurich and their ‘Builder’s risk’ policies. I can’t even seem to get the correct 800 number. Does anyone know how I can get in touch with a Zurich agent?

Re: Insurance for rehabs - Posted by DB(FL)

Posted by DB(FL) on June 29, 2001 at 13:18:32:

I just took out a policy a couple of weeks ago through Lloyds for 65000.oo, (not what I paid- but what it woul d cost to replace at local price), payments are 125.00 a month. It would be 115.oo a month at what I paid. This includes hurricane coverage. What do you think it would be with Zurich?
Thank for any replies.
Dan Bergdoll

Does anyone have a number for Zurich? - Posted by IB (NJ)

Posted by IB (NJ) on June 29, 2001 at 11:26:12:

Also, what type of policy am I looking for? I was just talking to my agent who was talking about rebuilding costs. Didn’t someone mention the ‘builder’s risk’ program?

Re: Insurance for rehabs - Posted by JPiper

Posted by JPiper on June 29, 2001 at 14:17:39:

Last time I had Zurich I paid $275 for one year.

I didn’t have hurricane coverage…we haven’t seen a hurricane in Missouri in recent years.

By the way, Zurich is for rehabs. When the rehab is over, and you either sell or rent, the policy ends…it’s non-refundable.

Last policy I did with Lloyd’s was around $400 for 3 months…vacant house policy.

JPiper

Re: Does anyone have a number for Zurich? - Posted by Mike Schmidt (IL)

Posted by Mike Schmidt (IL) on June 29, 2001 at 14:59:14:

Call your personal insurance agent and ask him about builders risk policies. They vary from company to company as to what they will cover and what type of buildings as well…ie. new construction only, rehabbing etc. Some of these do not cover materials stored on site, others do. Also there might be several riders than can be attached to the policy.

But bottom line is make sure the agent knows what he is talking about. Many agents specialize, either in personal lines, commercial lines, life/health etc. They might be used to selling only auto and standard home owners insurance and THINK they know what is covered. Always ask for a declarations page so you can read the exclusions your self.

Re: Does anyone have a number for Zurich? - Posted by JPiper

Posted by JPiper on June 29, 2001 at 12:47:38:

As far as I know they deal through brokers. They don’t sell direct.

JPiper

Re: Insurance for rehabs - Posted by IB (NJ)

Posted by IB (NJ) on July 01, 2001 at 03:33:39:

I have a basic fire/vacant house policy now with Lloyd’s. I’m assuming those Zurich policies cover fire and insure vacant dwellings?

Also, do you guys insure for the amount it costs to replace the dwelling?

Re: Insurance for rehabs - Posted by DB(FL)

Posted by DB(FL) on June 29, 2001 at 14:36:28:

Lloyd’s is the same type policy for rehabs as well. However, since Hurricane “Andrew” came through South Florida almost 10 years ago, insurance companies have considered that open game for charging any price they want, almost- or not wrighting any policies at all as some have done… The problems we have to deal with in “paradise”! Did I mention Hot summers and Big Bugs!!

Re: Does anyone have a number for Zurich? - Posted by JPiper

Posted by JPiper on June 29, 2001 at 15:37:42:

Good advice.

JPiper