House Flipper Insurance

What Type of Insurance Does a House Flipper Need?

The ideal insurance policy for a house flipper depends on several factors, such as the size and scope of their operations, the location of their properties, and other specific needs. That being said, all house flippers should consider four critical types of insurance coverage to protect their investments. 

Builder’s Risk Policy

A builder’s risk policy is an insurance policy that covers a house in the process of being built or renovated. This type of coverage protects against damage to the building structure, materials, and supplies during renovations. It can also cover other losses related to theft or vandalism while your home is under construction. 

This coverage provides protection for property owners/investors from any unexpected costs related to damages or theft during renovation. It is an important policy for house flippers, as it allows them to operate with the peace of mind that losses will be covered if the project takes longer than expected or if accidents occur while working on their property.

Liability Insurance

Accidents can happen at any time, even more so when renovations are taking place in a home. According to the U.S. Bureau of Labor Statistics, there were deaths on job sites represent over 20% of the total workplace fatalities. Liability insurance for home renovations is an important policy that can help protect a homeowner from any potential legal action should someone be injured while working on the property.

Liability coverage in a homeowners’ insurance policy offers protection against bodily injury claims and property damage caused by you or your family members. This type of coverage helps pay for losses if anyone who is not part of your family is injured or becomes ill while inside the house during renovations. It also provides coverage for certain types of damage to property that may have been caused by you or one of your family members.

For those who are selling their home, liability insurance can be a key element in the sale process as it demonstrates to potential buyers that they will be covered should anything go wrong during the purchase. Having this type of coverage in place can also be beneficial for contractors and other workers involved with the home renovation project, as it gives them peace of mind that they will be covered if any accidents occur while on the job.

Dwelling Policy 

Dwelling insurance offers coverage for physical and direct damages to an unoccupied home in the event of a covered loss. This type of policy is beneficial during minor renovations, as the property may be more exposed to risks such as fire hazards due to exposed wiring or gas lines, water damage from partial removal of pipes, or roofing repairs that could lead to greater damage from storms. 

In addition, dwelling insurance can also provide coverage against losses from vandalism and theft. This type of policy is especially helpful if the home is vacant during the renovation process, as it will cover any damage or stolen items that occur while the house is unoccupied. 

Vacant Home Insurance

Vacant home insurance is often necessary when a house is being renovated or is unoccupied for an extended period of time. This type of policy provides coverage against damage from fire, storms, and any other risks listed in the policy that may occur while the house is unattended.

It also covers vandalism and theft, which are especially common during long periods of vacancy. Vacant home insurance is a cost-effective way to protect your home and provide peace of mind throughout the renovation process.