Hi friends, do property insurance for the benefit of "Flip" from your experience or from cases where you get hit while…
Hi friends,
Makes property insurance in favor of "Flip"
From your experience or from cases we encountered when realizing the insurance - what are the emphases that the insurance should cover?
Right now I know 2 key things:
1. Replacement Cost - which should be equal to the value of the property after the renovation (purchase cost + renovation cost)
2. General Liability - Third party insurance where I will be covered if someone unrelated to the house, enters it and is injured.
Numerical examples are also welcome.
Most of the insurance for the Flip will be under a political master that contains what you wrote above, keep in mind that its cost is high
Joins what they wrote of me as well.
LiorLiorchik
Flip Insurance
Hi Alon Sumagin, be careful to ask the contractor to take out insurance that covers his employees and with third party coverage for you. Note that the contractor is licensed and works with PERMITS, note the amount of the deductible in your insurance, note that there are conditions for activating the insurance if you worked with authorized or unlicensed parties, check what happens if you finished a project before the policy time and received a refund for the remainder of the unused insurance period, you Must understand that insurance works according to cases and not only according to results. That is, REPLACEMENT COST, you need to understand in which cases you will receive it. This is where the coverage categories of DP1, DP2 and DP3 come in. Ask the insurance agent for the 3 levels of coverage and compare the differences, for flip projects the house is empty, note that this is mentioned and covered in your policy compared to occupied houses, specifically equal depending on the location Make sure there is coverage for vandalism or burglary . Search on Google, there are quite a few forums where Israeli investors say that they flipped and how they fell in a variety of different ways. There is a lot to learn from this, especially for Project Flip, I only say this because there are quite a few investors who mistakenly think that the insurance protects against losing, this is absolutely not true. Again, remember that the insurance is valid according to cases and not according to results. There is an example recently, I'm not mistaken, here in the forum of a flip investor that the project went wrong because of the contractor's work. This is a good example of the limitations and the difficulty of spending money from insurance on a project that does not succeed.