Help! Insurance Question
Talked to my normal insurance co. they will not insure vacant property (buy - rehab - sell). Referred me to another company. Here the glitch, they are checking but wanted to check with the group here.
Tha plan is to put the properties under my current Sub S corp. Sub S has been in existence for 8 years. We use this sub s for our training consulting business currently. I wanted to use it to hold properties as well.
Question is, will anyone give me insurance for the rehab home(s)? I think it would have been easier if in my name, but don't want to do that for proectection and tax advantage.
Any advice sure would be great. Thanks All!!!! 
Never had any issue insuring a **Please See My Profile** I'm surprised your running into that.
Shouldn't be a problem at all. The risk is the same (to the insurer) regardless of the type of entity that owns it. If your Agency creates a roadblock, you may want to find an Agent that is, and/or works with investors.
i think the problem maybe that it is a vacant property and not that an entity owns it. there are inisurance companies that do insure vacant properties..the rate is alot higher....i would recommend builders risk insurance especially during a substantial rehab project...
Ask them for a quote on a Builder's Risk policy instead of owner's policy. This should cover you while you rehab and won't conflict with the insurance company looking at it as an investment property.
Thanks all, will be sure to have them quote for "Builders Risk" insurance. Thanks again for the help!
Depending on your state, Foremost Insurance offers a true "rehab" policy. The rates are usually better than a "builder's risk" policy which is inherently designed for a contractor. With this in mind many builder's risk policies offer no refund on unused premium. Foremost is one company that does.
I ran into the same problem last month. Bought my first rehab and tried to get insurance for the vacant property. The insurance agent told me that since property insurance was so screwed up right now they would be hard pressed to find insurance for it. They called me back and told me they found a policy that only covered fire/wind/hail and nothing else for 900.00 a year. Solution. Went to another insurance agency and told them that I bought a rental that needed some repairs. I got a great policy for 348.00 per year. Easy enough. The word "vacant " costs alot of money.