Vacant Under-rehab INSURANCE

Let’s work together

Interested in working together? Fill out some info and we will be in touch shortly! We can't wait to hear from you!

FAQs

for Rehab of a Vacant Property

  • Builders Risk Insurance for rehab or renovation projects covers the property and construction materials during the renovation process. It protects against risks like fire, theft, vandalism, and some weather-related damage.

  • Homeowners insurance covers owner-occupied properties, while landlord insurance is designed for rental properties and provides additional protection, such as loss of rental income and tenant-related liability.

  • Coverage usually includes:

    • The existing structure

    • New materials and fixtures (installed and in storage)

    • Labor and supplies on-site

    • Certain soft costs (e.g., permit fees, interest, architect/engineer costs – if added)

  • Common exclusions:

    • Tools or equipment owned by contractors

    • Employee theft

    • Liability for injuries (separate policy needed)

    • Flood or earthquake (unless added)

    • Poor workmanship or design errors

    Mold or wear and tear

  • Policies can be written to cover either just the renovation work or both the existing structure and new work. Be sure to clarify this with your insurer.

  • Coverage is typically written in terms of 3, 6, or 12 months, with options to extend if the renovation takes longer.

  • Before any materials are delivered or construction begins. Some insurers won’t offer coverage after work has started.

  • Generally, the property owner purchases the policy, but it depends on the project structure. The contractor may be added as an additional insured.

  • Yes, but you’ll need to request off-site storage coverage as an endorsement.

  • Builders Risk Insurance typically covers vandalism and theft of materials related to the construction. Make sure those perils are included in your policy.

  • Typically:

    • Property address

    • Scope of renovation

    • Timeline and budget

    • Value of the existing structure (if insuring it)

    • Security measures (fencing, alarms, cameras)

    Contractor information

  • Yes. Once construction is complete and the home is occupied or rented, you should switch to a standard landlord policy.

  • No. Vacant Property Insurance covers an unoccupied home that isn’t under construction. If you're doing renovations, you typically need a Builders Risk policy instead.

  • Builders Risk does not include liability coverage by default. You’ll need a separate general liability policy to cover injuries or accidents on-site.

  • We currently operate in Ohio, Kentucky, Tennessee, Pennsylvania, Michigan, Indiana, Illinois, Minnesota, Mississippi, Missouri, Arizona, Arkansas, Georgia, North Carolina, and Texas