AZ Home "Flipper" Insurance Coverage Needed

[Goulet]

Does anybody have a carrier whom will write coverage for a Home Flipper? They are NOT licensed contractors and are acquiring multiple properties (generally 2-3 at a time) which they are fixing up with the help of licensed subcontractors and selling after approximately 2-3 months.

They would prefer a blanket or scheduled dwelling policy but will take whatever they can at this point. We currently have them written on a 3 Mo Vacant Dwelling Policy through AMIG but they only offer $500K Liability.

Their main concerns are as follows:

1. $1 Mill Liability Coverage (minimum)
2. Policy is in the name of their LLC (Commercial Policy, NOT Personal)

An excess umbrella that would go over their AMIG policies might work as well.

Thank you VERY much!!!

[wariline]

Check with Lexington. I believe they have such a program.

[LadyBroker]

I would be careful about putting this type of risk on Vacant home policies....if the client has a loss, the carrier is not going to be happy about the exposure. It's a misrepresention, really, and as a wholesaler, I see alot of these come to our side of the market once someone like Foremost accidentally inspects one and discovers there are renovations happening.

Call your local wholesaler and I would suspect they have a product for you that contemplates the Vacant dwelling, and also the construction exposures.

[threed]

I know your post is almost a month old but you should work with the folks at www.statewide-insurance.com

They have a program, on admitted paper, that addresses your exact needs. I've used them here in Las Vegas and they're very quick and easy to work with. You can schedule an unlimited number of dwellings, add/delete as needed, and it's even direct bill. They also address dwellings that are vacant at the time of a loss with a sliding deductible.

[robmejia]

If you need a mortgage insurance, houses sold less than 90 days after they were purchased aren't eligible for FHA mortgage insurance; those sold between 91 and 180 days are alright but require an additional, independent appraisal to make sure the sales price is justified.

[PAL_Ins]

We have a product, and although it is not admitted in Arizona, it does provide the limits of liability you need as well as coverage if the property is undergoing cosmetic renovations and swimming pool liability. We have an online rating system that will allow you to get quick indications. It might be a little late for the account you referenced, but if you still need help, please let me know. http://www.networkedins.com

[insurancechandleraz]

There are a lot of insurance companies in AZ that can take this risk. Let me know if you haven't found one already.