Ask Your Peers  Newbie question 

Hello everyone, just have a quick question as I am new in the industry, I have a relative that is buying a home that is in foreclosure and they are going to rehab it first and then eventually move in, do I write this up as a HO-3 or DP-3 since they are not residing there for a while?

thanks in advance

John

John,

Take a look at buildersrisk.com

Hi John, Not sure if the BR will work since this is not construction from the ground up. You will need to look into a renovation (BR and/or Renovation will require a license contractor). Other option is a vacant policy, American Integrity, FL, has a good product however, they are rather expensive. Debbie

Hi John!

You would want to start with a vacant property policy while the renovations are going on, and then convert it over to the Homeowner's when they are ready to move in. We have programs available in just about all states. Feel free to give us a call if you would like help with a quote.

Bill Korfker
Grand General Agency
800-869-2022
www.thehelpfulpeople.com

John -

I just noticed that you are in Florida. That would be one of the few states that we dont' have a product available. If your relative is somewhere else, we'd be willing to help you out.

Bill Korfker
Grand General Agency
800-869-2022
www.thehelpfulpeople.com

It will depend on each company. In my experience most companies will want it to be a DP-1 if it is vacant and under renovations. The best option for you would be to talk to each company individually and explain the situation. That way they are writing it based on their policy not just a general rule of thumb. I think a lot of their decisions will be based on timeframe of the renovations as well.

We write a Builsers risk with GL for renovations - we can include existing structures. We charge by the month. Martin

John,
I agree with Builders Risk interior renovation. Premium is based on completed value and other factors. Zurich is one of the carriers.
Liability: you need an Owners Contractors Protective (OCP) and the contractor's General Liability with Additional Insured Landlord. If owner is the General Contractor hiring the Subs, then the Subs have to have Additional Insured clause. Also make sure Subs have Workers Comp and Umbrella. A Performance Bond is ideal to offset any problems in keepign contract going by the Contractor. No Homeowner type policies here, regardless of your state, unless you issue a AIG or Chubb HO Deluxe policy and construction is short term. Good Luck!

We would do a BR and either OCP or vacant GL on one policy

Martin: Who is We?

Commercial insurance Group, LLC - Jenny is the BR/OCP/Vacant UW at 719-476-0123 .

we're an MGA