Fix and Flip insurance can be difficult to understand. The differences between homeowners insurance and fix and flip insurance can be minute if you do not know the details of your plan. So what is a Fix and Flip and how do you insure it properly?
What is a Fix and Flip?
A fix and flip is a vacant home that is in need of repair and refurbishment. Most of the time they are homes that need an immense amount of work done to them, but sometimes just cosmetic updates. At the end of the process the owner will then sell the house for a profit. During the construction process the house will be left vacant for long periods of time, which in turn raises the risk of losses. Vacant homes are almost always the first targets for theft and burglary.
What is Fix and Flip Insurance?
While homeowners insurance and property insurance covers primary residences and rental properties, fix and flip insurance is much more niche. It covers the homes that are being worked on, let us say that during your construction someone broke into the home in the middle of the night and spray painted some of the walls. This then causes you to spend $2000 to do more repairs, if you have fix and flip insurance then you would be covered. Most fix and flip insurance plans are shorter than a normal home policy, and if you were to finish your project before the end of your policy then you will be rebated the remaining portion. Regardless of the work to be done, if you are going to be working on it for more that a month, you need a vacant renovation (fix and flip) policy.
At AZ Insurance Team we have been doing fix and flip insurance policies for over a decade. We are here to help you find the best policy for your situation. If you have any questions then please give us a call today at (480) 535 5709!
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
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