Table of contents

*Quote takes 1 minute, no credit pull

Insurance

*1 quote from 40+ carriers

Listings

*New listings daily

Table of contents

Fix and Flip Insurance

Loan quote

* Takes 2 minutes, no credit pull

Last updated: June 2, 2025

"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett

What is Fix and Flip Insurance?

Fix and flip insurance, also known as renovation insurance or builder's risk insurance, is a specialized policy designed to protect real estate investors who purchase properties to renovate and resell for a profit. Unlike standard homeowners insurance, this type of policy accounts for vacant properties, construction risks, and frequent ownership changes: all common in fix and flip and BRRRR projects.

Whether you're a first-time investor or a seasoned flipper managing multiple renovations, fix and flip insurance is essential for protecting your investment capital, liability exposure, and resale timeline.

Fix and Flip Insurance Bundle

Fix and Flip insurance premiums are on the rise, up over 25% in the last 18 months, and this directly affects your profit and deal viability. Across our private lending and insurance rate shopping divisions, we review hundreds of fix and flip and insurance policies each year. We estimate that the typical fix and flip policy is quoted nearly 33% higher insurance premiums than is necessary based on lender guidelines and investor risk management preferences.

This is because many real estate investors get their fix and flip insurance policies from insurance agencies that do not specialize in commercial insurance policies. What's worse: these agencies are incentivized to sell you a more expensive policy because they get paid as a percentage of your premium. Even well-intentioned insurance agents commonly offer uncompetitive fix and flip insurance quotes because they're captive to one insurance carrier and unable to shop multiple carriers, or they lack specialization.

That's why we created the OfferMarket Insurance rate shopping platform. In under a minute you can shop 40+ carriers to get the best coverage at the lowest possible price. Your quote is quality-controlled by our expert team that specializes in saving money for 1-4 unit residential real estate investors. Every month we save thousands of dollars for our clients, and we're excited to find out how much you can save!

Fix and Flip Insurance Markets

Wherever your rehab project is located, we've got you covered.

Why You Need Fix and Flip Insurance

1. Vacant Properties Are High Risk

Most fix and flip projects begin with a property that is vacant. Standard insurance policies often exclude or void coverage on unoccupied homes due to higher risks such as vandalism, theft, and undetected damage (e.g. burst pipes, electrical fires).

2. Construction and Renovation Risks

Whether you're replacing a roof, rewiring electrical, or gutting a kitchen, the renovation process introduces risks like:

Structural damage
Contractor injuries
Fire hazards
Materials theft

Fix and flip insurance is tailored to these risks, providing coverage during all phases of the rehab.

3. Liability Protection

If a contractor or trespasser is injured on the job site, you could be held personally liable. A proper policy includes general liability coverage to protect you from lawsuits and medical expenses.

What Does Fix and Flip Insurance Cover?

Fix and flip insurance policies are highly customizable. Here are common types of coverage included or optionally added:

Property Coverage

Protects the structure and materials from risks like:

Fire
Vandalism
Theft
Lightning
Wind and hail
Water damage (non-flood)

General Liability

Covers bodily injury or property damage claims filed by third parties, including:

Slip and fall incidents
Injuries to contractors or trespassers
Damage to neighboring properties

Builder’s Risk

Often bundled with property coverage, builder’s risk covers the structure under renovation, materials in transit or storage, and newly installed features.

Vacant Property Endorsement

Ensures your policy remains valid even when the property is unoccupied during renovations.

Tools and Equipment

Optional coverage for tools or rented machinery stolen or damaged on-site.

Ordinance or Law Coverage

Covers additional costs to bring the property up to code after a loss, including demolition and rebuilding expenses.

Loss of Rents

Sometimes bundled into a fix and flip insurance policy and typically included in a landlord insurance policy, Loss of Rent or "business interruption" coverage protects against lost rental income due to a covered loss if you rent the property after completing your rehab or keep the property rented during your rehab. This is most relevant to BRRRR investors and multi-unit properties.

What is NOT covered?

Wear and tear or poor workmanship
Flood damage (requires separate flood insurance)
Earthquake damage (often excluded or requires a separate rider)
Intentional damage or fraud
Acts of war or government seizure

Always read the exclusions section of your policy and discuss with your insurance agent.

Who Needs Fix and Flip Insurance?

Fix and flip insurance is appropriate for:

Individual real estate investors
House flippers
Real estate LLCs and partnerships
Wholesalers who take title before resale (i.e. double close)
Private lenders protecting collateral

Whether you're flipping a $100,000 row home in Baltimore or a $2,000,000 luxury home in Florida, fix and flip insurance should be considered a risk management necessity.

How Much Does Fix and Flip Insurance Cost?

Premiums vary depending on:

Location
Property value
Scope of work ("SOW", "rehab budget", "scope of repairs")
Length of project
Coverage limits
Deductibles

Example rates

Property Value	Rehab Budget	Estimated Annual Premium
$150,000	$50,000	$1,000 – $2,000
$300,000	$100,000	$1,500 – $2,500
$500,000	$200,000	$2,000 – $3,500

Note:

annual insurance premiums are generally refunded on a pro-rated basis if you cancel the policy prior to policy term expiration. The most common reasons are either because of sale or refinance (i.e. DSCR loan) and switch into a landlord insurance policy.
bundling multiple properties under one policy ("portfolio policy") can reduce your per-property cost.

Best Fix and Flip Insurance

You have many choices when shopping for fix and flip insurance. Ultimately, your selection comes down to the risks you are willing to accept, the price you are willing to pay, the competitiveness of your rate shopping process, and the helpfulness of your agent and client service team. We recommend a comprehensive fix and flip insurance policy that includes property insurance, general liability insurance, business interruption insurance and, if necessary, flood insurance.

Working with an insurance agency that specializes in fix and flip insurance and has access to many carriers will get you the best coverage at the best price. Get your fix and flip insurance quote today!

How to Get Fix and Flip Insurance Through OfferMarket

OfferMarket streamlines the process of obtaining fix and flip insurance by connecting you with specialized underwriters who understand real estate investing.

The OfferMarket Advantage:

Fast quotes within 24 hours
Custom policies for 1-100+ properties
Support for various title-holding entities: personal name, LLC, C-Corporation, S-Corporation, Revocable Trust, Land Trust, LP
Support for highly specific lender guidelines
Competitive pricing via top-rated carriers
Easy COI generation (proof of insurance)
Secure record keeping in your secure Insurance File

Insurance Requirements for Fix and Flip Loans

Most lenders will require:

Property coverage at least equal to the loan amount
General liability ($1M+ per occurrence is typical)
Named insured and loss payee clauses
Proof of insurance before closing
Ongoing coverage during the loan term

Failing to maintain adequate insurance could lead to:

Loan default
Forced-placed insurance (at a higher cost)
Personal liability for damages

OfferMarket makes it seamless by coordinating with your lender during underwriting and after closing. Your borrowing and insurance experience will be especially streamlined if you get your fix and flip loan and DSCR loan from OfferMarket Capital, our private lending division.

How to Structure Coverage for a Multi-Property Portfolio

If you’re flipping more than one property at a time, consider:

Blanket policies: One policy that covers all properties.
Scheduled policies: Each property is listed with separate limits and premiums.
Master policies: Combines various coverages (vacant property, builder’s risk, etc.) into one bill.

OfferMarket helps high-volume flippers optimize insurance costs and administration across large portfolios.

Fix and Flip Insurance Checklist

Use this checklist to ensure you’re fully protected:

✅ Property insurance covers full replacement cost
✅ General liability of at least $1M
✅ Vacant property endorsement included
✅ Builder’s risk for renovation phase
✅ Tools/equipment coverage (if needed)
✅ Policy names your lender as loss payee
✅ Flood/earthquake insurance if required
✅ Start/end dates match your project timeline
✅ Certificate of insurance issued and stored

Fix and Flip Insurance Guidelines

Below, you will find common fix and flip insurance guidelines for fix and flip loans (otherwise known as hard money loans). These coverage limits are generally considered best practice from a risk management perspective.

Property Coverage

	Property Insurance
Mandatory	Yes
AM Best Rating	A- VIII or greater
Term	1 Year
Limits	- Limit is Replacement Cost. Use value from the appraisal report or Replacement Cost Estimator - Limit is Loan Amount. If loan amount is less than Replacement Cost, you must have an Agreed Value Policy or have zero coinsurance
Deductible	$5,000
Accepted Policy Types	- Dwelling Fire. Must be "Special Form" - Commercial Property. Must be "Basic" or "Special Form"
Cancellation	30-day notice
Exclusions	- No windstorm / hail exclusion - No named storm exclusion
Lender's Designation	Mortgagee

General Liability Coverage

	General Liability Insurance
Mandatory	Yes
AM Best Rating	A- VIII or greater
Term	1 Year
Limits	- $1,000,000 per occurrence - $2,000,000 in the aggregate
Deductible	$1,000
Coverage Details	Occurrence basis for losses (not claims-made)
Cancellation	30-day notice
Lender's Designation	Additional Insured

Business Interruption Insurance

This is optional but important if you plan to keep tenants in the property while the policy is in effect. Some fix and flip insurance policies are designed to remain in effect as landlord insurance once the property is rehabbed and rented.

	Business Interruption Insurance
Mandatory	Yes
AM Best Rating	A- VIII or greater
Term	1 Year
Limits	One year of effective gross rental revenue
Coverage Details	Provision for Actual Loss Sustained basis is acceptable
Cancellation	30-day notice
Lender's Designation	Mortgagee

Flood Insurance

If the property is in a FEMA special flood hazard area, then it may be required by your lender to obtain flood insurance.

	Flood Insurance
Mandatory	If in a flood zone (must obtain Flood Zone Determination)
AM Best Rating	A- VIII or greater
Term	1 Year
Limits	The greater of $250,000 or the loan balance
Cancellation	30-day notice
Lender's Designation	Mortgagee

Additional Details

If there is a lender involved in your fix and flip project, then you will be required to include your lender's mortgagee clause. This

Mortgagee Clause	OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230
Condos	- Blanket policy may be used if it allows the individual Unit to be included in coverage. - Homeowner association maintains an “all risk” coverage for common areas, fixtures, personal property, equipment at 100% of their insurable value on a replacement cost basis.
PUDs	- Project’s blanket policy may be used if it allows the individual Unit to be included in coverage. - Homeowner association maintains an “all risk” coverage for common areas, fixtures, personal property, equipment at 100% of their insurable value on a replacement cost basis.
Instructions	- Use ACORD form to ensure compliance - Send insurance certifications, invoices or paid receipts, no later than 24 hours before closing. - Send final policy documents, no later than 60 days after closing. - Borrower must notify carrier if property becomes vacant or unoccupied and obtain a vacancy permit from the insurance carrier for the entire period of vacancy.

Why Choose OfferMarket for Fix and Flip Insurance?

OfferMarket is a trusted partner for thousands of real estate investors and private lenders nationwide. Our platform simplifies not only property acquisition and financing, but also insurance procurement—removing friction from every stage of your deal.

What Sets Us Apart:

Real-time deal and insurance management platform
Dedicated support team for investors
Integrated insurance, lending, and off market deal flow
No wasted time shopping carriers—we handle it for you
Smart matching with investor-friendly insurers

Frequently Asked Questions

Do I need insurance before closing on a flip?

Yes. Your lender (or title company, if buying cash) will require proof of insurance before closing. OfferMarket can issue a certificate of insurance within hours.

Can I get insurance even if the property is already under renovation?

Yes, though you must disclose all existing renovation work. Some insurers may require an inspection or limit certain coverage types mid-project.

What if I sell the property early?

You can cancel the policy pro-rata and receive a refund for the unused premium.

Can I insure multiple flips under one policy?

Absolutely. OfferMarket offers portfolio policies that save money and simplify management for multi-property investors.

What if I’m also renting out a unit before the flip?

Depending on insurance carrier, fix and flip insurance may not cover active tenants. In that case, you’ll need a landlord policy or hybrid policy that accommodates temporary occupancy.

How does OfferMarket Insurance work?

OfferMarket Insurance is an insurance rate shopping platform specialized in providing real estate investors with landlord insurance for rental properties. OfferMarket Insurance shops for the most competitive policy that meets your preferences and lender guidelines. Our team of landlord insurance experts quality control your policy request to ensure it meets your requirements (your personal preference and your lender's guidelines) at the most competitive price.

Can I use my preferred insurance agent for my Fix and Flip loan?

As long as your preferred insurance agent has access to competitive fix and flip insurance coverage and the ability to understand and adhere to lender insurance coverage guidelines, you can certainly use your preferred insurance agent!

Given that fix and flip insurance guidelines are specific and require a commercial policy, we tend to encounter significant delays and operational expense when a real estate investor insists on using their preferred insurance agent. This is particularly an issue when the insurance agent specializes in personal lines, and is not specialized in commercial lines.

Clients of our private lending division, OfferMarket Capital, are encouraged to use OfferMarket Insurance to save time and money.

Can I pay for insurance on the HUD-1/ALTA settlement statement at closing?

Fix and flip loan guidelines require that your insurance premium is to be paid in full either on the settlement statement at closing, or directly through your insurance agent prior to settlement. If you pay directly through your insurance agent, you will be required to provide a paid receipt for verification.

Do I need to escrow my fix and flip insurance premium?

Most fix and flip lenders do not require insurance to be escrowed and paid by their in-house or 3rd party servicer. You should expect to be responsible for ensuring your policy is in effect and paid, especially if your project takes longer than 12 months, in which case many lenders will require proof that the policy has been renewed for a full 1 year term. You will receive a pro-rated refund from the insurance carrier upon cancellation of the policy.

What is an AM Best Rating?

AM Best is a financial services rating agency that specializes in assessing the financial strength and size of insurance companies. Learn more about AM Best Ratings.

What is builders risk insurance?

Builders risk insurance protects your property and on-site construction materials throughout the renovation, construction or rehab phase of your fix and flip or BRRR project. Perils covered by your builders risk insurance policy can vary by insurance carrier and your selected form (basic, special) and most commonly include fire, lightning windstorm, hail, falling debris, vandalism, and theft.

Buildings under construction
Materials and equipment on premises or within 100 feet
Foundation

Your builders risk policy is terminated when one of the following events occur:

Property ownership is transferred to the buyer
90 days have elapsed since construction was completed
Property is occupied or put to its intended use
Insured's interest in the property ceases
Insured abandons the construction project with no intention of completion

Most builders risk policies are on a Completed Value Form where the property insurance dwelling coverage policy limit equals the property's ARV or ARV replacement cost estimate.

Protect and grow your portfolio with OfferMarket

Fix and flip insurance isn’t a luxury—it’s a necessity. With tight margins, aggressive timelines, and unpredictable risks, smart investors know that protecting the downside is just as important as chasing upside. Whether you're flipping one property a year or managing dozens of deals, OfferMarket’s insurance solutions scale with you.

Protect your capital. Protect your reputation. Protect your future.

OfferMarket is a real estate investing platform focused on serving rental property investors, specifically 1-4 unit residential properties. Our mission is to help you build wealth through real estate.

☂️ Landlord Insurance rate shopping platform specialized in landlord insurance that meets DSCR loan guidelines
🏚️ Off Market Properties marketplace featuring hundreds of exclusive and off market deals posted by wholesalers, tired landlords and distressed sellers.
💰 Private Lending featuring instant quotes and a simple, low cost, transparent borrowing experience for DSCR loans, Fix and Flip loans and Slow Flip loans.
💡 *Insights regularly published to provide you with a knowledge advantage.

Loan quote