NEED INSURANCE - Posted by David FL

Posted by Kiersten on May 18, 2001 at 20:48:26:

Good point–kind of pointless to pay for coverage if they won’t honor a claim once they find out it’s vacant. I haven’t gotten into the type of coverage the above people mentioned, but he’s always very knowledgable when other issues have come up so I’d bet he knows what you need and probably sells it! I’ve been using him for years and have never had a buyer have a problem. Good luck!

NEED INSURANCE - Posted by David FL

Posted by David FL on May 18, 2001 at 17:01:44:

I can’t find an insurance agent to write a policy on vacant homes I’m currently rehabbing. What does everyone else do? I’ve been paying cash so its been my gamble, but its a risk I don’t want take. Also as I start using lenders money I know it will become an issue. Any company names would be helpful, I can see if they have agents that write in my part of Florida. Thanks, David FL

Re: NEED INSURANCE - Posted by Nate(DC)

Posted by Nate(DC) on May 19, 2001 at 10:29:20:

For a vacant house you’ll be renovating, you definitely need builders’ risk. I use Zurich - someone else posted their name as well - and they are about the best product out there for small-time rehabbers like us.

Zurich sells only through independent agents, so try calling some of the independent agents in your area and see if they represent Zurich. If you can’t find any, look for agents that do “construction insurance” or ask some of the contractors you know where they get their insurance from. Eventually you’ll be able to find someone.


Re: NEED INSURANCE - Posted by Rob FL

Posted by Rob FL on May 18, 2001 at 19:31:07:

The type of policy you are looking for is called a “builder’s risk policy.” Ask around. Lots of agents carry these.

Re: NEED INSURANCE - Posted by jeremy FL

Posted by jeremy FL on May 18, 2001 at 17:36:00:

I had the same problem a few years ago I now use Zurich they have a special program setup for rehabbers. I would definitley insure all your properties that is taking a huge risk to save a few hundred dollars. I would search the archives for some tele numbers I am sure this has been discussed before. If you can’t find it e-mail me and I will dig up their number.

Re: NEED INSURANCE - Posted by Kiersten

Posted by Kiersten on May 18, 2001 at 17:14:26:

Hmmmm, I’ve never had an agent tell me I couldn’t get coverage on an investment loan I’m doing. I’m a lender and have lots of clients buying rentals, investments, etc. Is it perhaps not that it’s vacant but the condition it’s in? I use a company here in Orlando–Chartered Insurance. The agents name is Paul and his number is 407 831 0567. He is very competitive on rates and gets me Dec. pages fast–but do call him back if you have to leave him a VM message because he’s not too quick checking them. Now, I did a loan recently down south and his rate was VERY high compared to the other quotes my buyer got so I don’t know where you are but he’s worth a shot. I guess I’ve never mentioned that property was vacant–I just say it’s a rental or ‘investment property’. I don’t now if this makes a difference . . . Ask him–he sells to many companies and could tell you what clauses would cause problems. Good luck!

Re: NEED INSURANCE - Posted by Mike Schmidt (IL)

Posted by Mike Schmidt (IL) on May 18, 2001 at 20:49:05:

Not sure if this is true with all of these policies or if a rider can be attached, but most times they do not cover materials on the job site, or tools. Basically if its not attached, its not covered. So if your having materials delivered and letting them sit for a while, ask about coverage for them to be sure.

Re: NEED INSURANCE - Posted by David FL

Posted by David FL on May 18, 2001 at 17:44:56:

Thanks I’ll call him see if he writes in Tampa/St.pete area. Yes it does make a differance if the house is a rental. My Nationwide agent will write rentals but won’t touch vacant homes. He dosen’t even know anyone that will. I don’t want to tell an agent its a rental when its not. I’m sure they would catch on after several houses where on and off the policy. And it would probably be the first time I had a claim.