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Fix and Flip Insurance Michigan

Last updated: June 12, 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 Michigan—sometimes referred to as renovation insurance or builder’s risk insurance—is a dedicated policy crafted for real estate investors buying properties across the Great Lakes State to renovate and resell. Unlike standard homeowners insurance, fix and flip insurance Michigan is tailored for the realities of local real estate investing: vacant homes, ongoing construction, and frequent changes in ownership. These are especially common with fix and flip and BRRRR projects throughout Metro Detroit, Grand Rapids, Ann Arbor, Lansing, and other Michigan markets.

Whether you’re new to investing or a veteran house flipper with several projects active in Michigan, fix and flip insurance is essential. It protects your investment capital, shields you from liability, and helps keep your renovation timeline on track, regardless of where your next flip is—from Grosse Pointe to Kalamazoo.

Over the last 18 months, fix and flip insurance premiums have climbed by more than 25% across Michigan, directly squeezing profit margins and deal viability for local investors. Through our Michigan-focused lending and insurance divisions, we review hundreds of fix and flip insurance policies every year. We’ve found that most investors in Michigan are quoted premiums almost 33% higher than necessary—usually due to lack of market specialization.

Many Michigan real estate investors get their fix and flip insurance policies from agencies that aren’t experts in commercial or renovation insurance. Unfortunately, these agencies often have a financial incentive to sell higher-priced policies—they’re paid based on your premium. Even well-meaning agents, if they’re limited to just one carrier or lack Michigan market knowledge, often can’t provide the most competitive rates or the best policy fit.

That’s why OfferMarket built a rate shopping platform for Michigan investors. In just a minute, you can compare quotes from over 40 top-rated carriers serving Michigan. Each quote is reviewed by a dedicated team that specializes in saving money for Michigan’s 1-4 unit residential investors. Every month, we save thousands of dollars for local clients, and we’d love to see how much you could save on your next Michigan flip.

Fix and Flip Insurance Bundle

Fix and Flip Insurance Markets

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Wherever your Michigan investment property is located, we’ve got you covered: We also provide nationwide coverage

Why You Need Fix and Flip Insurance in Michigan

1. Vacant Properties Mean Higher Risk in Michigan Neighborhoods

In Michigan, fix and flip projects almost always begin with a vacant home. Traditional insurance often excludes or limits coverage on these unoccupied properties, which are at higher risk for issues like vandalism, copper theft (a real concern in Michigan cities), and undetected problems such as frozen or burst pipes during harsh Michigan winters.

2. Renovation and Construction Risk—Michigan Style

Whether you’re rehabbing a craftsman bungalow in Royal Oak or gutting a duplex in Flint, every Michigan renovation introduces risks:

  • Structural damage from aging Michigan housing stock

  • Contractor injuries on icy walkways or job sites

  • Fire hazards, especially during electrical upgrades

  • Materials theft—common in both urban and rural areas

Fix and flip insurance Michigan is built to address these risks, providing coverage throughout every phase of your local renovation.

3. Liability Protection for Michigan Investors

If a contractor or even a trespasser is hurt on your Michigan property, you could face significant liability. A quality policy provides the general liability coverage needed to protect your investment from lawsuits and unexpected medical bills.

What Does Fix and Flip Insurance Michigan Cover?

Fix and flip insurance policies in Michigan are highly customizable. Here are the typical protections included or available as add-ons:

Property Coverage

Covers the Michigan property and renovation materials against:

  • Fire

  • Vandalism and theft

  • Lightning

  • Wind and hail—particularly important with Michigan storms

  • Water damage (not including flood)

General Liability

Protects you from third-party claims such as:

  • Slip and fall accidents—think icy Michigan sidewalks

  • Injuries to contractors or uninvited guests

  • Damage to neighboring homes or businesses

Builder’s Risk

Often packaged with property coverage, builder’s risk protects the structure you’re renovating, as well as materials in storage or in transit to your Michigan job site.

Vacant Property Endorsement

Ensures that your policy stays valid, even when the Michigan property sits empty between purchase, rehab, and sale.

Tools and Equipment

Optional protection for the tools or rented equipment kept on your Michigan work site.

Ordinance or Law Coverage

Pays for the extra costs of bringing your Michigan property up to local building codes after a loss—including demolition or rebuilding as required by Michigan law.

Loss of Rents

Sometimes included if you plan to rent out your Michigan property during or after the renovation. This “business interruption” coverage compensates for lost rent due to a covered loss—a key benefit for BRRRR investors and those with Michigan multi-unit properties.

What is NOT Covered by Michigan Fix and Flip Insurance?

  • Wear and tear, poor workmanship

  • Flood damage (requires a separate Michigan flood policy)

  • Earthquake damage (generally excluded; may need a special rider)

  • Intentional or fraudulent acts

  • Government action or war

Always review your exclusions and talk with your Michigan insurance agent for full clarity.

Who Needs Fix and Flip Insurance Michigan?

This specialized insurance is essential for:

  • Michigan individual real estate investors

  • House flippers operating in Detroit, Ann Arbor, Lansing, and beyond

  • Real estate LLCs and investment partnerships

  • Wholesalers who take title before resale (including double close deals)

  • Michigan private lenders looking to protect their collateral

Whether you’re flipping a $90,000 colonial in Saginaw or a $1.5M home on Lake Michigan, fix and flip insurance Michigan is your risk management foundation.

How to Structure Coverage for a Multi-Property Portfolio in Michigan

If you’re managing multiple renovation projects across Michigan—maybe a few in Detroit, a couple in Grand Rapids, and another in Lansing—structuring your fix and flip insurance for maximum efficiency and savings is essential.

Consider these policy options for your Michigan portfolio:

Blanket Policies

A single insurance policy that covers all your Michigan investment properties, simplifying management and often reducing costs.

Scheduled Policies

Each Michigan property is listed separately, with individual limits and premiums—ideal if your properties have significantly different values or risk profiles.

Master Policies

A comprehensive approach, combining various coverages (vacant property, builder’s risk, liability, etc.) for all your Michigan properties in one convenient bill.

OfferMarket helps high-volume Michigan flippers optimize their insurance strategies—saving time, money, and administrative hassle.

Fix and Flip Insurance Michigan Checklist

Use this Michigan-focused checklist to make sure your next flip is fully protected:

✅ Full replacement cost property insurance
✅ General liability coverage of at least $1 million
✅ Vacant property endorsement (critical for Michigan winters and urban properties)
✅ Builder’s risk insurance for your renovation phase
✅ Tools and equipment coverage if needed
✅ Lender named as loss payee on the policy
✅ Flood/earthquake insurance as required (check FEMA flood maps for Michigan)
✅ Policy dates that match your project timeline
✅ Certificate of insurance issued and stored securely

Fix and Flip Insurance Guidelines for Michigan

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Below are common insurance guidelines for Michigan fix and flip (hard money) loans, strictly adapted for local context.

Property Coverage

Requirement
Mandatory Yes
AM Best Rating A- VIII or greater
Term 1 Year
Limits Replacement Cost (per Michigan appraisal) or Loan Amount (if lower, Agreed Value/zero coinsurance required)
Deductible $5,000
Accepted Policy Types Dwelling Fire ("Special Form"), Commercial Property ("Basic" or "Special Form")
Cancellation 30-day notice
Exclusions No windstorm/hail exclusion, no named storm exclusion
Lender’s Designation Mortgagee

General Liability Coverage

Requirement
Mandatory Yes
AM Best Rating A- VIII or greater
Term 1 Year
Limits $1,000,000 per occurrence, $2,000,000 aggregate
Deductible $1,000
Coverage Details Occurrence basis
Cancellation 30-day notice
Lender’s Designation Additional Insured

Business Interruption Insurance

Requirement
Mandatory Yes, if property is or will be rented
AM Best Rating A- VIII or greater
Term 1 Year
Limits One year of effective gross rental revenue
Coverage Details Actual Loss Sustained basis accepted
Cancellation 30-day notice
Lender’s Designation Mortgagee

Flood Insurance (If required in Michigan flood zones)

Requirement
Mandatory If in a FEMA special flood hazard area
AM Best Rating A- VIII or greater
Term 1 Year
Limits Greater of $250,000 or the loan balance
Cancellation 30-day notice
Lender’s Designation Mortgagee

Additional Michigan Details

Detail Description
Mortgagee Clause OfferMarket Capital LLC ISAOA/ATIMA
627 S Hanover St
Baltimore, MD 21230 (for Michigan loans, update as needed)
Condos (Michigan) Blanket policy allowed if the individual Michigan unit is included. HOA must maintain “all risk” coverage for common areas, fixtures, personal property, and equipment at 100% replacement cost.
PUDs (Michigan) Project’s blanket policy permitted if individual units are included. HOA must maintain “all risk” coverage at full replacement value.
ACORD Form Use ACORD insurance certificate to ensure compliance with lender and Michigan regulations.
Submission Timelines Submit insurance certifications, invoices, or paid receipts no later than 24 hours before closing.
Final Policy Docs Send the complete final policy documents no later than 60 days after closing.
Vacancy Notification If the Michigan property becomes vacant or unoccupied, notify your carrier and obtain a vacancy permit for the entire period.
Lender Communication Always keep your lender updated on the insurance status, especially during vacancy or change of occupancy.

Why Choose OfferMarket for Fix and Flip Insurance Michigan?

OfferMarket is the trusted partner for real estate investors and private lenders throughout Michigan. Our platform streamlines not just your property acquisitions and financing, but also your fix and flip insurance in Michigan—eliminating roadblocks at every step.

What Sets OfferMarket Apart for Michigan Investors

  • Real-time deal and insurance management platform, built for Michigan real estate professionals

  • Dedicated support team, familiar with Michigan’s unique market conditions

  • Integrated insurance, lending, and off-market deal flow for Michigan investors

  • No wasted time shopping carriers—OfferMarket does the hard work for you

  • Smart matching with investor-friendly insurers that serve Michigan communities

Frequently Asked Questions — Fix and Flip Insurance Michigan

Do I need insurance before closing on a Michigan flip?

Yes. Whether you’re buying in Detroit, Grand Rapids, or Traverse City, your lender (or title company, if you’re paying cash) will require proof of insurance before closing. OfferMarket can issue your certificate of insurance within hours.

Can I get fix and flip insurance in Michigan if my property is already under renovation?

Absolutely. Just make sure to disclose all existing work. Some insurers may require an inspection or place restrictions on coverage types if renovations are underway.

What if I sell my Michigan property early?

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

Can I insure multiple Michigan flips under one policy?

Yes! OfferMarket offers portfolio policies to help multi-property Michigan investors save money and simplify management.

What if I’m renting out a unit before flipping in Michigan?

Some fix and flip policies may not cover active tenants. In these cases, you’ll need a landlord or hybrid policy that can accommodate temporary occupancy—OfferMarket can guide you.

How does OfferMarket Insurance work for Michigan properties?

OfferMarket Insurance is a rate shopping platform focused on Michigan real estate investors. We match you to the most competitive policy that fits both your personal preferences and lender’s guidelines. Every policy request is quality-controlled for accuracy and compliance.

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

Yes, as long as your agent offers competitive fix and flip insurance and can meet lender guidelines. However, many personal-lines agents are unfamiliar with the commercial requirements for Michigan fix and flip loans, which may cause delays. OfferMarket Capital clients are encouraged to use our in-house solution to save time and money.

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

Most Michigan fix and flip loans require you to pay your insurance premium in full, either at closing or directly through your agent before settlement. If you pay through your agent, you’ll need to show proof of payment.

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

Most Michigan lenders do not require insurance to be escrowed. You’re usually responsible for ensuring your policy remains in effect, especially for projects that extend beyond 12 months. If you cancel early, you’ll typically receive a pro-rated refund.

What is an AM Best Rating?

AM Best is a financial rating agency that assesses the strength of insurance companies. Only insurers rated A- VIII or better are recommended for Michigan fix and flip policies.

What is builder’s risk insurance?

Builder’s risk protects your Michigan property and on-site materials during construction or renovation, covering risks like fire, wind, hail, theft, and vandalism. Coverage typically ends when you sell, occupy, or complete the renovation.

Protect and Grow Your Michigan Portfolio with OfferMarket

Fix and flip insurance Michigan isn’t just a formality—it’s a necessity for smart investors. With Michigan’s tight margins, quick timelines, and sometimes unpredictable local risks, savvy investors know that protecting against downside is just as crucial as seeking upside. Whether you’re handling a single Detroit rehab or running multiple projects across the state, OfferMarket’s insurance solutions will scale with you.

OfferMarket is a real estate investing platform dedicated to rental property investors in Michigan and nationwide. Our mission is to help you build wealth through real estate—safely and efficiently.

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