House Flipping Insurance in Alabama

Types of House Flipping Insurance in Alabama

In Alabama, there are several types of house flipping insurance policies available, each designed to cover specific risks associated with different stages of the house flipping process.

It's important to understand the different types of policies to ensure you choose the one that best suits your needs.

Builder's Risk Insurance

Builder's risk insurance is the most common type of house flipping insurance. It covers the property during the construction or renovation phase, protecting against risks such as fire, theft, and vandalism. This policy typically covers the cost of the structure and any materials on-site or in transit to the site.

However, it's important to note that builder's risk insurance does not cover accidents or injuries that occur on the property. For this, you'll need a separate liability insurance policy.

General Liability Insurance

General liability insurance provides coverage for any accidents or injuries that occur on your property. This is crucial for house flippers, as construction sites are often prone to accidents. Without this coverage, you could be held financially responsible for any injuries that occur on your property.

General liability insurance also covers legal costs if you're sued as a result of an accident on your property. This can be a lifesaver, as legal fees can quickly add up and potentially ruin your house flipping venture.

Vacant Property Insurance

Vacant property insurance is another essential coverage for house flippers. This policy covers your property when it's vacant, which is often the case during the house flipping process. Vacant properties are more susceptible to risks such as vandalism, theft, and damage from natural disasters.

Keep in mind that standard homeowner's insurance policies often exclude coverage for vacant properties, making vacant property insurance a vital coverage for house flippers.