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Fix and Flip Insurance Delaware
Last updated: June 4, 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
Fix and flip insurance in Delaware—sometimes called builder’s risk insurance or renovation insurance—is a purpose-built coverage solution for real estate investors taking on properties with plans to rehab and resell. Unlike ordinary homeowners insurance, fix and flip insurance in Delaware is crafted to address risks unique to local investors, such as vacant properties, construction hazards, and frequent title transfers. These are routine aspects of Delaware fix and flip and BRRRR projects, from Wilmington to Rehoboth Beach.
Whether you’re renovating a historic home in New Castle or flipping a coastal property in Lewes, having the right insurance is essential to safeguard your investment, manage liability, and protect your project timeline in Delaware’s competitive real estate market.
Over the past year and a half, fix and flip insurance premiums in Delaware have jumped by more than 25%. This rise impacts your bottom line and the profitability of every Delaware fix and flip deal. Here at OfferMarket, our lending and insurance teams evaluate hundreds of local policies each year and estimate that, for many Delaware investors, insurance quotes are nearly 33% higher than necessary compared to lender guidelines and true risk profiles.
What’s causing the premium surge? Most investors in Delaware are still getting their fix and flip insurance from agencies that don’t specialize in commercial or investment properties. Many of these agents are paid a commission based on your premium, incentivizing higher-cost policies. Additionally, agents limited to a single carrier or lacking commercial expertise often present less competitive rates—even with good intentions.
That’s why OfferMarket launched a transparent insurance rate shopping platform for Delaware. In less than a minute, you can compare more than 40 leading carriers and secure optimal coverage for your Delaware fix and flip, at the best price. Every quote is reviewed by our team of experts who know what Delaware investors need, saving local flippers thousands each month. Let’s see how much you can save on your next Delaware project.
Fix and Flip Insurance Markets
Wherever your property is in Delaware, we have the coverage and expertise you need to flip with confidence.
| Fix and Flip Insurance Markets |
|---|
| Fix and Flip Insurance Wilmington |
| Fix and Flip Insurance Newark |
| Fix and Flip Insurance Dover |
| Fix and Flip Insurance Middletown |
| Fix and Flip Insurance New Castle |
| Fix and Flip Insurance Sussex County |
| Fix and Flip Insurance Kent County |
| Fix and Flip Insurance New Castle County |
Why You Need Fix and Flip Insurance in Delaware
1. Vacant Properties Carry Extra Risk
Many Delaware fix and flip projects start with homes that sit empty—whether it’s an older house in Dover or a beach cottage in Bethany. Standard home insurance policies typically don’t protect vacant properties, often excluding coverage due to the higher risks of vandalism, break-ins, or undetected water damage (such as burst pipes during a Delaware winter). Fix and flip insurance is tailored to protect these vacant investments while they’re being transformed.
2. Renovation and Construction Exposures
Delaware renovations often mean new roofs in Wilmington, kitchen gut-jobs in Newark, or complete rehabs in Rehoboth Beach. Each project brings risks such as:
Accidental structural damage
On-site contractor injuries
Increased fire risks during construction
Theft of materials and tools
Fix and flip insurance is designed to provide coverage for all of these common risks, protecting you throughout every phase of your Delaware rehab.
3. Liability Shield for Delaware Investors
If a contractor is injured while renovating a row home in Wilmington, or a trespasser slips at your Newark project, you could be held personally liable. Proper fix and flip insurance provides general liability coverage to shield you from lawsuits and medical bills.
What Does Delaware Fix and Flip Insurance Cover?
Policies are flexible to fit your specific Delaware project. Common types of coverage include:
Property Protection
Safeguards the structure and building materials from risks like:
Fire or lightning
Vandalism or theft
Wind, hail, and storm damage
Water damage (excluding floods)
General Liability
Covers claims for third-party bodily injury or property damage, including:
Contractor or visitor injuries
Damage to adjacent Delaware properties
Builder’s Risk Coverage
Often included with property protection, builder’s risk covers the building under renovation, materials in transit, and newly added features.
Vacant Property Endorsement
Keeps your Delaware fix and flip policy active while the property is unoccupied during your project.
Tools and Equipment
Optional protection for tools or rented construction equipment against on-site theft or damage.
Ordinance or Law Coverage
Helps pay for bringing your property up to Delaware building code after a covered loss, including demolition and rebuilding.
Loss of Rents
If you plan to rent your Delaware property after the rehab or during a BRRRR strategy, loss of rents coverage helps replace rental income if there’s a covered claim.
What is Not Covered?
Delaware fix and flip insurance typically excludes:
Wear and tear, faulty workmanship
Floods (requires a separate policy)
Earthquakes (generally not included)
Intentional or fraudulent acts
War or government seizure
Always review your exclusions and consult a Delaware insurance expert for guidance.
Who Needs Delaware Fix and Flip Insurance?
Fix and flip insurance is right for:
Individual investors in Wilmington, Dover, or any part of Delaware
LLCs and real estate partnerships
Flippers, wholesalers, and private lenders protecting local investments
Whether you’re flipping a classic Victorian in New Castle or a new build in Middletown, insurance is a must-have for your Delaware project.
How Much Does Fix and Flip Insurance Cost in Delaware?
Premiums depend on:
Property location in Delaware
Market value and rehab budget
Project scope and timeline
Desired coverage and deductibles
Example Delaware 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: Most policies offer pro-rated premium refunds if you sell or refinance before the policy ends. Bundling Delaware properties under a “portfolio policy” can lower your costs even more.
Best Fix and Flip Insurance for Delaware
Your choice of coverage depends on your risk tolerance, desired price, and the quality of your agent and service. We recommend a robust Delaware fix and flip insurance policy that includes property protection, general liability, business interruption, and, if required, flood insurance for properties in special flood hazard areas.
Working with an agency that specializes in Delaware investment insurance and shops multiple carriers will help you get the best coverage at the best rate. Get your Delaware fix and flip insurance quote today!
How to Get Fix and Flip Insurance Through OfferMarket
OfferMarket streamlines the process for Delaware real estate investors by connecting you directly with insurance experts who understand the nuances of local property risks, market regulations, and lender expectations.
The OfferMarket Delaware Advantage
Fast, competitive quotes—often within 24 hours for Delaware addresses
Custom policies for 1 to 100+ Delaware properties, single-family homes or small multifamily units
Full support for personal, LLC, corporation, trust, and partnership title structures
Alignment with even the most specific Delaware lender requirements
Access to 40+ top-rated carriers active in Delaware’s real estate market
Instant proof of insurance (COI) for your next settlement
Secure digital recordkeeping for all your Delaware insurance documents
Insurance Requirements for Fix and Flip Loans in Delaware
Most Delaware lenders will require:
Property insurance covering at least the full loan amount
General liability insurance (usually $1M+ per occurrence)
Named insured and loss payee clauses
Proof of insurance prior to closing
Continuous coverage for the entire loan term
If you fail to maintain the required insurance, you could face:
Loan default and possible foreclosure
Forced-placed (more expensive) insurance by your lender
Personal liability for damages during your Delaware project
With OfferMarket, you won’t need to chase paperwork—our Delaware team coordinates directly with your lender to ensure compliance from start to finish. If you use OfferMarket Capital for both your fix and flip loan and insurance in Delaware, the entire process is even more seamless.
Structuring Multi-Property Portfolio Insurance in Delaware
For active Delaware flippers with more than one project, we recommend:
Blanket policy: One policy covers all your Delaware flips, from Wilmington to Rehoboth Beach.
Scheduled policy: Each property listed with its own coverage and premium, under a single plan.
Master policy: Combines vacant property, builder’s risk, and more into a single, easy-to-administer bill.
OfferMarket helps high-volume Delaware investors reduce per-property insurance costs and paperwork headaches.
Fix and Flip Insurance Checklist
Use this checklist to make sure your Delaware fix and flip is fully protected:
| Checklist Item | Delaware-Specific Guidance |
|---|---|
| ✅ Property insurance at full replacement cost | Use Delaware appraisal or replacement cost estimator |
| ✅ General liability at $1M+ | Standard for most DE lenders |
| ✅ Vacant property endorsement | Especially important in Wilmington, Dover, and beach markets |
| ✅ Builder’s risk for the rehab phase | Required for construction in most Delaware cities |
| ✅ Tools and equipment coverage if needed | Especially on larger, longer projects |
| ✅ Name lender as loss payee | Delaware lenders will require this |
| ✅ Flood or earthquake if needed | Flood required in FEMA hazard zones—check your property’s status |
| ✅ Start and end dates match your timeline | Update your carrier if there are delays in Delaware |
| ✅ Certificate of insurance issued and saved | Store securely for all DE deals |
Fix and Flip Insurance Guidelines for Delaware Investors
Below are the most common fix and flip insurance guidelines used by Delaware lenders and underwriters.
Property Coverage
| Category | Requirement for Delaware |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Term | 1 year |
| Limits | Replacement Cost or loan amount |
| Deductible | $5,000 |
| Accepted Policy Types | Dwelling Fire (Special Form), Commercial |
| Cancellation | 30-day notice |
| Exclusions | No windstorm/hail/named storm exclusions |
| Lender's Designation | Mortgagee |
General Liability Coverage
| Category | Delaware Standard |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Term | 1 year |
| Limits | $1M/occurrence, $2M aggregate |
| Deductible | $1,000 |
| Coverage Details | Occurrence-based |
| Cancellation | 30-day notice |
| Lender's Designation | Additional Insured |
Business Interruption Insurance
| Category | Delaware Requirement |
|---|---|
| Mandatory | Yes (if keeping tenants) |
| AM Best Rating | A- VIII or higher |
| Term | 1 year |
| Limits | 1 year gross rental revenue |
| Cancellation | 30-day notice |
| Lender's Designation | Mortgagee |
Flood Insurance
| Category | Delaware Requirement |
|---|---|
| Mandatory | If in FEMA flood zone |
| AM Best Rating | A- VIII or higher |
| Term | 1 year |
| Limits | $250,000 or loan balance, whichever higher |
| Cancellation | 30-day notice |
| Lender's Designation | Mortgagee |
Tip: For condos and PUDs in Delaware, check that your HOA’s blanket policy covers common areas and that your individual unit is included.
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 Delaware Fix and Flip Insurance?
OfferMarket is trusted by Delaware real estate investors and private lenders from Wilmington to Lewes. We remove the friction from property acquisition, financing, and insurance—all on one easy-to-use platform.
What Sets Us Apart for Delaware Investors?
Real-time deal and insurance management built for Delaware’s property market
A support team that knows the Delaware landscape and investor needs
Integrated insurance, lending, and exclusive off-market property deals
No wasted time shopping for carriers—we handle it all for you
Intelligent matching with investor-friendly, local insurance carriers
Frequently Asked Questions About Delaware Fix and Flip Insurance
Do I need insurance before closing on a Delaware flip?
Yes. Your Delaware lender or title company will require proof of insurance before closing. OfferMarket can issue a certificate of insurance for your Delaware address in just hours.
Can I get insurance if my Delaware project is already under renovation?
Yes, but you must disclose all current renovation work on the Delaware property. Some carriers may require an inspection or limit certain coverages mid-project.
What if I sell my Delaware property before the policy expires?
You can cancel and receive a pro-rata refund of your unused premium.
Can I cover multiple Delaware flips under one policy?
Absolutely. Portfolio and blanket policies are available for Delaware investors to save time and money.
What if I rent a Delaware unit before the flip?
Some policies won’t cover properties with active tenants, so you may need a hybrid or landlord policy for your Delaware project.
How does OfferMarket Insurance work in Delaware?
OfferMarket’s rate shopping platform is customized for Delaware’s real estate investors, providing fast quotes, expert review, and quality control for both fix and flip and landlord coverage.
Can I use my own insurance agent for my Delaware flip?
If your agent can meet Delaware lender guidelines and provides competitive coverage, you can—but using an experienced Delaware fix and flip insurance provider like OfferMarket can save time and operational headaches.
Can I pay the Delaware insurance premium at closing?
Yes, premiums can be paid at Delaware settlement or directly to your agent. Just provide a paid receipt if you pay outside of closing.
Do Delaware lenders require escrows for fix and flip insurance?
Most do not, but you are responsible for ensuring continuous coverage. Pro-rated refunds are available if you cancel early.
What is an AM Best Rating?
It’s a rating that measures the financial strength of your insurer. Always choose A- VIII or higher for Delaware properties.
What does builder’s risk cover in Delaware?
Builder’s risk insurance in Delaware covers your property and on-site construction materials throughout the rehab, protecting against fire, wind, vandalism, and theft.
Protect and Grow Your Delaware Investment Portfolio
Fix and flip insurance isn’t just a box to check for Delaware investors—it’s essential for protecting your capital, reputation, and future opportunities in the state’s dynamic real estate market. Whether you’re flipping one home in New Castle County or running multiple rehabs across Delaware’s cities and beach towns, OfferMarket’s insurance solutions scale with you.
Protect your Delaware projects. Safeguard your returns. Build your legacy.
OfferMarket is dedicated to helping Delaware investors build wealth with confidence. We specialize in:
☂️ 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.