Insurance

Comments(13)

• 
  ray_higdon3rd December, 2004

  On insurance, start making calls, depending on your area and the carriers number of already carrying non-owner occupied...
  
  I would try state farm first though, they've been good with my stuff
  [addsig]

• 
  norrist4th December, 2004

  Foremost, home office in Grand Rapids, has policies specifically designed for the rehab investor. AMIG (American Modern) is another such company. Check with your local REIA group for Agent referrals...
  
  Best regards,
  
  Tim[ Edited by norrist on Date 12/04/2004 ]

• 
  Ronald8705th December, 2004

  Thank you i will check Formost on Monday.

• 
  mistahkg8th December, 2004

  Quote:
  On 2004-12-03 18:40, ray_higdon wrote:
  On insurance, start making calls, depending on your area and the carriers number of already carrying non-owner occupied...
  
  I would try state farm first though, they've been good with my stuff
  
  
  
  Hi Ray,
  
  Are you saying State Farm will insure vacant properties that are being rehabbed?

• 
  jam2008th December, 2004

  My State Farm agent said they'd insure me. However, it would take 8-12 weeks before they could get to it. I told'em no thanks, and went with Foremost.

• 
  ray_higdon13th December, 2004

  mistahkg, depends on the amount of rehab, I've never tried with something that was a total wreck, but I've used them for smaller rehabs NOO
  [addsig]

• 
  mikejaquish13th December, 2004

  I'm looking at a rehab that needs a ton of work.
  
  My State Farm agent told me they won't touch it.
  [addsig]

• 
  LadyGrey13th December, 2004

  Don't know if this will work for you: We wound up just taking a bigger HELOC loan and buying our major fixer-upper with cash. No insurance needed - until after all the repairs were done. It needed major work - floors, walls, electric, everything. Once it was done we took a mort out on it, paid back our HELOC, and got insurance without any problem.

• 
  norrist14th December, 2004

  LadyGray,
  
  Make sure you have some sort of commercial liability protection...

• 
  LadyGrey14th December, 2004

  What is commercial liability? I don't know a lot about insurance yet.

• 
  mryan1314th December, 2004

  Make sure you read the fine print or at least deal with someone you can trust to tell you the truth.....you need COC (course of construction) coverage to make sure you are covered for theft & vandalism, most policies don't have this built in even though agents and companies will make you feel like you are completely covered.

• 
  norrist15th December, 2004

  Good point, Ryan...
  
  LadyGray,
  
  You need to make sure that you have protection in the event someone gets hurt at the property. I termed it "commercial" liability, because you do not want to tie-in your personal liability to a rental, rehab, etc...
  
  This article should help:
  
  
  http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=438
  
  Happy Holidays!
  
  Tim

• 
  LadyGrey15th December, 2004

  Would I need that liability protection even though we are doing the repairs ourselves?