Insurance for house flippers.

Vacant property or builder’s risk, liability for the rehab, and coverage for the months a finished house waits for a buyer, for investors who act as their own general contractor.

What house flippers usually carry

Builder’s risk or vacant dwelling property
General liability, $1M / $2M
Theft and vandalism
Workers’ comp, if you hire crews directly
Hired and non-owned auto
Umbrella

Watch for these in a fix-and-flip policy

Homeowners policiesA homeowners policy expects the owner to live there. On a flip it may not pay at all, so the house needs a vacant dwelling or builder’s risk policy.
VacancyMost property policies cut back coverage, often for vandalism, theft, and water damage, once a house sits empty for 60 days. A finished flip waiting for a buyer is exactly that.
Liability that excludes the rehabA vacant-property liability policy often excludes renovation work. Once you act as the GC, you need liability that covers construction.
Your own houseGeneral liability never covers damage to property you own. A fire or a burst pipe in the flip is a property claim, not a liability claim.
After the saleMost general liability policies exclude damage to a property you sold when the damage comes from that property. Buyer claims about the house itself are often not covered.

What lenders ask house flippers for

Mortgagee on the property policyThe lender is named as mortgagee on the builder’s risk or vacant dwelling policy, for at least the loan amount.
Additional insured on liabilityMany lenders ask to be named on your general liability too.
Coverage for the whole loanLenders want coverage in force from closing until the house sells, with notice to them if it lapses.
Certificates before drawsSome lenders ask for certificates from every contractor before they release a draw.

Questions house flippers ask

Straight answers.

The questions we hear most, answered plainly.

Can I use a homeowners policy on a flip?

Usually not. Homeowners policies are written for owner-occupied homes. A flip needs a vacant dwelling or builder’s risk policy, plus liability for the renovation.

Do I need general liability if my contractors are insured?

Yes. As the GC you answer for the whole project, and each contractor’s policy covers only its own work. Their certificates, naming you, keep their claims off your policy.

What happens to my coverage when the house sells?

Property coverage ends at closing. A later claim over your work goes to the liability policy in force when the injury or damage happens, so many flippers keep one running between projects.