Answers for Arizona investors
What insurance does a house flipper need from purchase to sale?
A house flip usually needs builder's risk or vacant property coverage from the day you close, general liability for you or your LLC, and a certificate of insurance from every contractor. If the home sits empty while it's listed, it may need vacant coverage after the work ends, and if you keep it as a rental, switch to a landlord policy before the first tenant moves in.
Coverage at each stage
| Stage | What to have in place | Watch for |
|---|---|---|
| Under contract | A binder for the lender, effective on the closing date | The named insured matching the buyer on title, and the lender listed as mortgagee |
| During the rehab | Builder's risk or vacant property coverage, plus general liability | Contractor certificates, vacancy conditions, and materials stored on site |
| Listed for sale | Vacant coverage, or builder's risk if the policy allows it after the work ends | The date the builder's risk term ends |
| Kept as a rental | A landlord policy with loss of rents | A dwelling limit based on the finished home |
Before you close
Tell your agent the plan, how long the work should take, and who will own the property. Lenders often ask for a binder before closing, so line it up early. Our answer on proof of insurance at closing has the checklist.
During the rehab
Many standard policies weren't written for an empty home under construction. Builder's risk can cover the structure, the work in progress, and materials, depending on the policy, while general liability covers injuries and damage to others. Ask every contractor for a certificate of insurance before they start. Our builder's risk guide covers how the limit is set.
Selling or renting
When the work is done, the builder's risk policy may end. If the home will sit empty while it's listed, check whether you need vacant coverage. If you keep it, start a landlord policy before the tenant moves in. Our free Rehab to Rental Coverage Checklist walks through each step.
Quotes and coverage are subject to underwriting and carrier approval. Everhold Insurance is a licensed insurance agency in the State of Arizona. License # 3004512575.
Questions flippers ask
Straight answers.
Can I use a homeowners policy on a flip?
Usually not. A homeowners policy is written for a home you live in, and a flip is an empty home under renovation, which many homeowners policies limit.
Who insures a flip, me or the contractor?
Usually both, for different things. You typically carry coverage on the property, and your contractors carry general liability and workers comp for their work and their crews; the contract should spell out who carries what.
What if the flip takes longer than planned?
Your policy term may need to be extended. Builder's risk and vacant policies are often written for a set term, so set a reminder before it ends.
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