Commercial Real Estate Pro Network

If you are doing house flips; purchasing fixer upper properties,fixing & selling for a quick profit, your short term profit options can be significant.  Insurance for this is not so easy.   The following are some good first steps: Contract: A good first question to answer: will you be doing the work yourself, or hiring a contractor.  If you are hiring a contractor, the best practice is to have:? contract in place with the contractor specifying Insurance requirements Insurance covering: Property: The proper form of Property Insurance for a renovation project is a Builders Risk Policy.  This provides coverage from the acquisition value of the structure through the completed project value.  It satisfies the requirement from lenders when required to provide proof of insurance.   Liability: Depending on the work that will be done and who will be doing, and the controls you have in place to minimize your risk, you will need to have some Liability Insurance. Premises Liability is the basic trip and fall coverage should anyone get hurt at the premises described on the policy.  This is a must, and very reasonably priced.  Completed Operations is the best option for coverage, especially if you are performing major renovations including the envelope of the building that could result in future damage to the structure. If you have any questions regarding your Quick Flip operations insurance needs, give me a call. For a sample contract and certificate example, click here.