As part of our series on helping the everyday real investor making their investments into a business, we asked Farmers' Insurance Agent Jen Gregorski about what kind of coverage someone flipping property needs. Here's an excerpt from our interview:
Q: What about people that are just flipping property? They're going to buy a property, maybe they're going to spend two or three months rehabbing it, doing work, nobody's living there. Is that a different kind of insurance that they would need?
A: It's a different type of insurance. You need a builder's risk policy. What makes it a little different is the insurance on the building is going to adjust as time goes on, with the understanding that you're putting money into building and it's becoming more finished as time goes on. So the policies also can be written in different time-frames. Usually a policy is an annual policy, where builders-risk ... if you think it's going to take you six months to finish the building, we write it on a six-month policy and we can always extend if we need to. But it's with the understanding that in six months you're going to be finished and it's going to be ready for resale or rent or whatever it is.
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Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.