Everhold Insurance

For flippers and BRRRR investors

The Rehab to Rental Coverage Checklist.

Most coverage gaps on a project happen in the handoffs: closing to rehab, rehab to rental. Here is every step, in order, so there's never a day without the right policy.

Email Me the Checklist Quote Builder's Risk

The checklist, stage by stage

1Before you close

  • Tell your agent the plan. Flip, BRRRR, or long term rental, and roughly how long the work will take. The plan decides the policy.
  • Use the right policy for the project. A standard landlord or homeowners policy often limits coverage on a home that's vacant or under renovation. Ask for vacant property or builder's risk coverage for the rehab stage.
  • Insure it in the right name. The named insured should match the owner on title. If an LLC is buying, the LLC should be on the policy.
  • List your lender. Add the lender as mortgagee or loss payee, exactly as the loan documents show it, so the binder is accepted the first time.
  • Set the limit for the finished project. Builder's risk limits are usually based on the completed value of the work, not today's purchase price. Confirm how your carrier wants it set.

2During the rehab

  • Get your contractors' certificates. Ask every contractor for proof of general liability and workers comp before they start, and ask to be added as an additional insured where they can.
  • Read the vacancy conditions. Many vacant and builder's risk policies expect the property to be locked, with utilities managed and regular visits. Write the conditions down and follow them.
  • Ask about materials on site. Some policies cover materials and supplies stored at the property; some don't. Know which you have before the cabinets arrive.
  • Watch the project dates. If the work runs long, the policy term may need to be extended. Set a reminder two weeks before it ends.

3Before the first tenant moves in

  • Convert to landlord coverage with no gap. Switch from vacant or builder's risk to a landlord policy (often a DP-3) effective before move in, so there's never a day without the right coverage.
  • Add loss of rents. If a covered loss makes the home unlivable, loss of rents (fair rental value) coverage can replace the rent while it's repaired.
  • Update the rebuild cost. The renovation changed what it costs to rebuild. Set the new dwelling limit from the finished home.
  • Require renters insurance. Put it in the lease. Your policy protects your building, not your tenant's belongings or their liability.
  • Check your umbrella. A new rental adds liability. Make sure any umbrella policy lists the new property and the entity that owns it.
  • Put the renewal on one calendar. Add the new policy's renewal date to the same list as every other property, and start shopping 60 days out.

General information, not a review of your policy. Coverage depends on the policy's terms and the carrier's underwriting. Short term rentals need a policy written for short term rental use.

Keep a copy

Get the checklist as a PDF.

Print it, send it to your partner, or keep it in the project folder.

Closing soon on a project? Request a builder's risk or vacant property quote. When it rents, we convert it to landlord coverage with no gap.

Prefer to talk to a real person? We reply within four business hours.