Fix and Flip Insurance Arizona

Last updated: June 4, 2025

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

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Fix and flip insurance, often called builder’s risk or renovation insurance, is a specialty policy made for Arizona real estate investors who buy, renovate, and resell homes for profit. Unlike basic homeowners insurance, Arizona fix and flip insurance considers the unique risks tied to vacant homes, active renovations, and frequent property transfers—scenarios that are common in Phoenix, Tucson, Mesa, Chandler, and beyond.

Whether you’re tackling your first project in Scottsdale or managing multiple flips across Maricopa County, fix and flip insurance Arizona helps protect your investment capital, shields you from lawsuits, and keeps your project timeline safe from unexpected disruptions.

Fix and flip insurance premiums are climbing fast in Arizona—rising more than 25% in just the last 18 months. This trend directly impacts your profit and whether a deal pencils out. At OfferMarket, our insurance and private lending teams review hundreds of Arizona fix and flip policies each year. We’ve found that the average fix and flip policy is quoted roughly 33% higher than what lender guidelines and smart investor preferences require.

This happens because many Arizona investors work with agencies that don’t specialize in commercial policies for flips and rehabs. Worse, many agents are incentivized to sell costlier policies—since their commission is tied to your premium. Even honest agents often can’t compete: they might be locked into just one carrier or don’t know the ins and outs of renovation insurance for the Arizona market.

That’s why we built the OfferMarket Insurance platform. In under a minute, you can shop more than 40 insurance carriers to find the best Arizona fix and flip coverage at the lowest possible rate. Our specialist team quality-controls every quote, ensuring you get the best savings whether you’re flipping in Phoenix, Tempe, or anywhere in the Grand Canyon State.

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Fix and Flip Insurance Markets

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Wherever your Arizona project is located, we’ve got you covered.

Why You Need Fix and Flip Insurance

1. Vacant Properties Are High Risk

Most Arizona fix and flip projects begin with a vacant house. Ordinary insurance policies will often refuse or void coverage on empty homes because of greater risks—like vandalism, break-ins, or slow discovery of water leaks and fires.

2. Construction and Renovation Risks

Whether you’re putting on a new roof in Mesa, rewiring a kitchen in Chandler, or gutting a historic bungalow in Tucson, every step introduces risks:

• Possible structural damage

• Accidents and injuries for contractors

• Fire, especially during hot Arizona summers

• Materials theft—common on active job sites

Arizona fix and flip insurance is made for these risks, protecting you from start to finish.

3. Liability Protection

If anyone is hurt on your job site—contractor, visitor, or trespasser—you could face personal liability. General liability coverage is included in a fix and flip insurance policy to help pay for legal and medical costs.

What Does Fix and Flip Insurance Cover?

Fix and flip insurance policies in Arizona can be tailored to your specific property and project. Common coverages include:

Property Coverage

Protects your investment from:

• Fire

• Vandalism

• Theft

• Lightning

• Wind and hail (which can be severe during Arizona’s monsoon season)

• Water damage (excluding floods)

General Liability

Covers bodily injury and property damage claims brought by:

• Visitors

• Contractors

• Trespassers

• Neighbors (for accidental property damage)

Builder’s Risk

Builder’s risk, typically bundled with property coverage, protects the property during the entire renovation. It covers:

• The structure under renovation

• Materials (on-site, in storage, or in transit)

• Newly installed fixtures

Vacant Property Endorsement

Ensures your insurance stays valid while the Arizona property is unoccupied during rehab.

Tools and Equipment

Optional coverage for theft or damage to your tools and rented equipment during your Arizona project.

Ordinance or Law Coverage

Covers the cost to bring your Arizona property up to state or city code after a covered loss, including demolition and rebuilding.

Loss of Rents

For those renting out an Arizona home after the flip, this protects against lost rental income due to a covered loss, most relevant for BRRRR investors or multi-family units.

What is NOT Covered?

Fix and flip insurance policies for Arizona properties have important exclusions. Typical exclusions include:

• Regular wear and tear or poor-quality workmanship

• Flood damage (flood insurance must be purchased separately if needed in Arizona flood zones)

• Earthquake damage (usually not included; may require a special rider)

• Deliberate damage or fraudulent claims

• Acts of war or government seizure

Always check the exclusions in your Arizona policy and talk to your insurance advisor to make sure you understand what isn’t covered.

Who Needs Fix and Flip Insurance?

Fix and flip insurance is vital for the following in Arizona:

• Individual Arizona real estate investors

• House flippers operating in cities such as Phoenix, Glendale, Mesa, or Tucson

• Real estate LLCs, partnerships, or corporations registered in Arizona

• Wholesalers who take title prior to resale (double close)

• Private lenders protecting their collateral in Arizona projects

From a starter home in Tempe to a luxury flip in Paradise Valley, fix and flip insurance should be considered an essential part of your risk management toolkit.

How Much Does Fix and Flip Insurance Cost?

Premiums in Arizona depend on several factors:

• The city or location of your Arizona property (Phoenix, Chandler, etc.)

• The value of your investment property

• Size and complexity of your rehab or “Scope of Work” (SOW)

• Project duration and timeline

• Coverage limits and deductible choices

Example rates for Arizona:

Best Fix and Flip Insurance

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When shopping for fix and flip insurance in Arizona, you’ll find plenty of choices. What sets the best policy apart isn’t just price—it’s about balancing the risks you face, the cost you’re willing to pay, the competitiveness of your insurance shopping, and the support you get from your insurance agent.

Our recommendation for Arizona:
A strong fix and flip insurance policy should always include the following core protections for your Arizona properties:

• Property insurance that covers the structure itself

• General liability insurance for accidents and legal risks

• Business interruption insurance (especially if you plan to rent out the property in the short term)

• Flood insurance if your Arizona investment is in a FEMA flood zone

Partnering with an Arizona insurance agency that specializes in fix and flip projects and has access to many reputable carriers is the surest way to secure the right coverage at the best possible price.

Get a quote for Arizona fix and flip insurance and start protecting your next deal.

How to Get Fix and Flip Insurance Through OfferMarket

OfferMarket makes obtaining fix and flip insurance in Arizona quick and seamless by connecting you with specialized underwriters who are experts in the unique risks faced by Arizona investors.

The OfferMarket Advantage:

• Rapid quotes—often within 24 hours

• Tailored policies for 1 to 100+ Arizona properties

• Support for all Arizona title-holding structures: individual, LLC, C-Corp, S-Corp, revocable or land trust, LP

• Compliance with the specific guidelines required by Arizona lenders

• Competitive pricing through top-rated insurance carriers

• Effortless COI (Certificate of Insurance) generation for closings

• All your insurance documentation stored securely in your personal Insurance File

Insurance Requirements for Fix and Flip Loans

In Arizona, most lenders require the following insurance standards:

• Property coverage at least equal to the loan amount

• General liability—$1,000,000+ per occurrence is standard

• Policy must include named insured and loss payee clauses

• Proof of insurance before you close

• Continuous insurance for the entire loan term

If you don’t maintain proper insurance, you could face:

• Loan default

• Forced-placed insurance at a higher cost

• Personal liability for damages or losses

OfferMarket makes this easy:
We coordinate directly with your Arizona lender throughout the underwriting process and after closing. If you finance your flip or DSCR loan with OfferMarket Capital, your entire borrowing and insurance experience is even more streamlined.

How to Structure Coverage for a Multi-Property Portfolio

If you flip more than one property at a time in Arizona, you should consider your insurance structure:

Blanket Policies

A single policy that covers all your Arizona fix and flip properties under one umbrella.

Scheduled Policies

Every property is listed with its own set limits and premiums, all within one comprehensive policy.

Master Policies

Bundles together vacant property, builder’s risk, general liability, and other coverages into a single master policy and bill.

OfferMarket helps Arizona investors streamline insurance costs and administration for growing portfolios, so you can spend less time on paperwork and more on your deals.

Fix and Flip Insurance Checklist

Make sure you have every box checked for your next Arizona flip:

Fix and Flip Insurance Guidelines

Below are the most common guidelines for fix and flip insurance required for Arizona fix and flip loans (also known as hard money loans). These are best practices in risk management for Arizona real estate projects.

Property Coverage

General Liability Coverage

Business Interruption Insurance

This coverage is important if you plan to keep tenants in the property while the policy is active. Some Arizona fix and flip insurance policies will remain in effect as landlord insurance after the property is rehabbed and rented.

Flood Insurance

If your property is in an Arizona FEMA special flood hazard area, your lender may require you to obtain flood insurance.

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

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Additional Details

If you are using financing for your Arizona fix and flip project, your insurance policy must include your lender’s mortgagee clause. This ensures the lender’s interest is protected should there be a loss.

Mortgagee Clause Example:
OfferMarket Capital LLC ISAOA/ATIMA
627 S Hanover St
Baltimore, MD 21230

Condos

• You may use a blanket insurance policy for Arizona condominiums if it allows each individual unit to be included in the coverage.

• The homeowners association (HOA) should carry “all risk” insurance that covers all common areas, fixtures, personal property, and equipment, insuring them at 100% of their replacement value.

PUDs (Planned Unit Developments)

• For Arizona PUDs, a project-wide blanket policy can be acceptable, provided it includes your individual unit.

• The HOA must maintain “all risk” coverage for common elements, fixtures, personal property, and equipment at their full insurable value.

Instructions

• Always use an ACORD form for insurance compliance in Arizona.

• Insurance certifications, invoices, or paid receipts must be sent to your lender at least 24 hours before closing on your Arizona property.

• Final policy documents should be provided no later than 60 days after closing.

• If your property becomes vacant or unoccupied, you must notify your insurance carrier and obtain a vacancy permit for the entire vacant period.

Why Choose OfferMarket for Fix and Flip Insurance?

OfferMarket is a trusted partner for real estate investors and private lenders across Arizona and the nation. We make every part of your project easier—whether you’re acquiring, financing, or insuring your fix and flip deal in Phoenix, Tucson, Mesa, or beyond.

What Sets OfferMarket Apart?

• Real-time deal and insurance management: One platform to manage everything, from offers to coverage.

• Dedicated support for Arizona investors: Our team understands the state’s unique real estate landscape and lender requirements.

• Integrated solutions: Shop for insurance, secure funding, and discover off-market properties all in one place.

• No time wasted: We shop all major carriers for you, so you always get competitive rates for Arizona fix and flip insurance.

• Smart matching: We connect you with insurance partners who are investor-friendly and understand Arizona regulations.

Frequently Asked Questions

Do I need insurance before closing on a flip in Arizona?

Yes. Your lender—or the title company, if you’re buying with cash—will require proof of insurance before you can close. OfferMarket can issue a certificate of insurance for your Arizona property in just a few hours.

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

Yes, but you must disclose all work already completed or underway. Some insurance carriers may require an inspection or restrict coverage if you’re mid-project.

What if I sell my Arizona property before the policy ends?

You can cancel your policy and receive a pro-rated refund for any unused premium.

Can I cover multiple Arizona flips under a single policy?

Absolutely. OfferMarket offers portfolio policies to help Arizona investors save money and make management easy—perfect for those with multiple projects.

What if there’s a tenant in my Arizona property before the flip is complete?

Some fix and flip insurance won’t cover active tenants. If you’re renting out your Arizona property, you may need a landlord or hybrid policy for proper protection.

How does OfferMarket Insurance work?

OfferMarket Insurance is a specialized rate shopping platform for Arizona investors. We shop the top carriers for the best policy that matches your risk preferences and your lender’s requirements. Every request is reviewed by our expert team to ensure compliance and savings.

Can I use my preferred insurance agent for my Arizona flip?

Yes, as long as your agent offers competitive fix and flip coverage and understands lender guidelines for Arizona. Delays are common with agents who only work in personal lines or lack experience with commercial/investor insurance.

Can I pay my insurance premium at the Arizona closing table?

Yes. Most Arizona lenders will let you pay your insurance premium on the HUD-1/ALTA settlement statement at closing, or you can pay your agent directly before closing (you’ll need a paid receipt).

Do I have to escrow my insurance premium?

Most Arizona fix and flip lenders don’t require insurance to be escrowed. You are responsible for keeping your coverage active. If your project lasts longer than 12 months, be prepared to show that you’ve renewed for another year.

What is an AM Best Rating?

AM Best rates the financial health and stability of insurance companies. In Arizona, we only work with A- VIII or higher-rated carriers for peace of mind.

What is Builder’s Risk Insurance?

Builder’s risk insurance is a crucial part of any Arizona fix and flip or major renovation project. This specialized insurance, also known as course of construction coverage, is designed to protect your property and investment during the entire period of construction, remodeling, or substantial rehab—before the home is ready to be lived in or sold.

What Does Builder’s Risk Insurance Cover in Arizona?

Builder’s risk insurance policies for Arizona properties offer broad protection for:

• Buildings under renovation or construction:
  Whether you’re rehabbing a downtown Phoenix home, expanding a property in Scottsdale, or doing a complete gut renovation in Tempe, this coverage protects the structure from the day work begins until the project is done.

• Construction materials and supplies:
  Materials and fixtures stored on-site, in transit, or temporarily offsite (but meant for your Arizona project) are covered. This is especially important for fix and flip jobs with expensive cabinets, flooring, or appliances waiting to be installed.

• On-site equipment and tools:
  Equipment and tools that stay at the construction site can be covered for damage or theft—an essential feature for Arizona investors who manage multiple projects or work with various contractors.

What Perils Are Typically Covered?

An Arizona builder’s risk policy usually covers losses caused by:

• Fire (including those caused by Arizona’s dry heat)

• Lightning strikes

• Wind and hail—especially relevant during Arizona’s summer monsoon season

• Vandalism and malicious mischief

• Theft of covered property or materials

• Accidental damage from falling objects or debris

• Explosions or other sudden, accidental incidents

What’s Not Covered by Builder’s Risk Insurance?

Most builder’s risk policies in Arizona do not cover:

• Ordinary wear and tear

• Faulty design, construction, or poor workmanship

• Flood or earthquake damage (unless you add special endorsements)

• Employee theft or intentional property damage

• Acts of war or government seizure

• Mechanical breakdowns of construction equipment

Always check your exclusions and talk with your agent to ensure you have the right add-ons for your Arizona project’s risks.

Your Arizona builder’s risk insurance policy kicks in as soon as construction or renovation starts and will remain active until one of these events occurs:

• The property is sold to a new owner

• 90 days have passed since construction or rehab was completed

• The property is occupied or being used as intended

• You no longer have an insurable interest in the property

• The project is abandoned before completion

Most builder’s risk insurance in Arizona is written on a Completed Value Form, which means your coverage amount should match the final, after-repair value (ARV) or the full replacement cost of the completed home—not just the original purchase price.

Protect and Grow Your Arizona Real Estate Portfolio with OfferMarket

Fix and flip insurance in Arizona is not an optional expense—it’s an essential safety net that protects your capital, reputation, and ability to keep doing deals. With tight margins, fast timelines, and unpredictable risks ranging from monsoon damage to job site theft, smart Arizona investors know that protecting the downside is as important as chasing profits.

Whether you’re flipping your first home in Mesa or managing a portfolio of renovations from Tucson to Glendale, OfferMarket’s insurance solutions are designed to grow with you and meet the exact demands of Arizona’s real estate market.

Protect your capital. Safeguard your reputation. Secure your future.

OfferMarket is dedicated to helping Arizona real estate investors build wealth and minimize risk with:

☂️ 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.