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Fix and Flip Insurance New York

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Last updated: June 14, 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 New York, sometimes called renovation insurance or builder’s risk insurance, is a purpose-built policy crafted for real estate investors buying properties to renovate and resell in the Empire State’s ever-changing market. Unlike regular homeowner coverage, this protection is uniquely designed for New York’s vacant brownstones, active construction projects in the city and upstate, and properties that change hands often—a scenario common in local fix and flip and BRRRR strategies.

Whether you’re taking on your very first renovation in Brooklyn or managing multiple gut rehabs from Manhattan to Buffalo, fix and flip insurance is an essential safeguard for your investment dollars, risk exposure, and project timelines across New York’s diverse neighborhoods.

In New York, fix and flip insurance premiums have surged more than 25% in the last year and a half—a trend that cuts into investor margins and deal feasibility. With our deep roots in private lending and insurance rate shopping for New York investors, we analyze hundreds of fix and flip policies annually. Our data shows that most New York fix and flip insurance is quoted about 33% higher than what’s truly necessary per lender guidelines and sound risk management.

The culprit? Most New York real estate investors turn to insurance brokers who aren’t commercial specialists. Many agents are incentivized to sell you a pricier policy because their commission is a slice of your premium. Even well-meaning New York insurance reps may provide high or uncompetitive rates because they’re tied to a single carrier or simply lack the specialization needed for the local fix and flip market.

That’s why we built the OfferMarket Insurance rate shopping platform for New Yorkers. In less than a minute, you can compare 40+ carriers for the ideal policy at the lowest possible price. Each quote undergoes a quality check from our New York insurance specialists, who are experts at saving 1-4 unit residential investors money. Every month, we help New York investors save thousands—see what you can save on your next project!

Fix and Flip Insurance Bundle

Fix and Flip Insurance Markets in New York

Wherever your renovation is based—from Brooklyn brownstones to Buffalo bungalows—OfferMarket has New York covered.

Why You Need Fix and Flip Insurance in New York

1. Vacant Properties in NY: A Magnet for Risk

Most New York fix and flip projects begin with a vacant building. Standard homeowner’s policies rarely cover empty properties because they come with a higher chance of vandalism, theft, and slow-to-detect damage (think: burst pipes during winter in upstate NY or electrical mishaps in city walkups).

2. Construction and Renovation Hazards Unique to NY

Whether you’re installing a new roof in Queens, rewiring a Park Slope brownstone, or gutting a kitchen in Westchester, New York renovations come with risks such as:

Accidental structural damage
On-site contractor injuries
Fire hazards in aging buildings
Stolen construction materials

New York fix and flip insurance is tailored to these local risks, covering you throughout your project.

3. Liability Coverage for New York Investors

If a contractor or even a trespasser is injured on your site—common in city environments where foot traffic is high—you could face personal liability. A comprehensive New York fix and flip policy will include general liability to protect you from lawsuits and medical claims.

What Does Fix and Flip Insurance in New York Cover?

Policies for New York fix and flip investors are highly customizable. Here are common protections included (or available as options):

Property Coverage

Covers your structure and materials against:

Fire (including common city fire hazards)
Vandalism
Theft (especially common in vacant urban properties)
Lightning
Wind, hail
Water damage (excluding flood)

General Liability

Protects you from third-party claims of bodily injury or property damage—important in New York’s densely populated settings.

Builder’s Risk

Often bundled with property insurance, this covers buildings under renovation, materials in storage or transit, and upgrades being installed.

Vacant Property Endorsement

Keeps your policy valid even when your New York property is empty during renovations.

Tools and Equipment

Optional protection for your tools or machinery on-site—a smart add-on in New York City where job site theft is common.

Ordinance or Law Coverage

Covers the extra costs of bringing your property up to code after a loss—a frequent challenge with New York’s strict building codes.

Loss of Rents

Sometimes included, this protects your rental income if a covered loss prevents you from renting after rehab—especially relevant for multi-unit or BRRRR investors.

What’s Not Covered?

Wear and tear or shoddy workmanship
Flood damage (separate flood insurance required in flood zones)
Earthquake damage (rare, but needs a separate rider)
Intentional damage or fraud
Acts of war or government seizure

Be sure to review the exclusions on your New York policy and discuss them with a local insurance agent.

Who Needs Fix and Flip Insurance in New York?

Fix and flip insurance is crucial for:

Individual investors and house flippers
New York LLCs and real estate partnerships
Wholesalers who take title (even for a double close)
Private lenders protecting collateral

Whether you’re flipping a Harlem rowhouse for $400,000 or a multimillion-dollar Sag Harbor estate, New York fix and flip insurance is a must-have for risk management.

How Much Does Fix and Flip Insurance Cost in New York?

Premiums for fix and flip insurance in New York depend on:

Property Value	Rehab Budget	Estimated Annual Premium
$300,000	$75,000	$1,500 – $2,500
$500,000	$150,000	$2,000 – $4,000
$1,000,000	$350,000	$4,000 – $7,000

Premiums are typically refunded on a pro-rated basis if you cancel before the policy ends. This often happens when you sell or refinance (such as transitioning to a DSCR loan).

Bundling multiple New York properties under a single portfolio policy may reduce your per-property cost.

Best Fix and Flip Insurance in New York

New York real estate investors have a wealth of choices when it comes to shopping for fix and flip insurance. Ultimately, your selection depends on the level of risk you’re willing to accept, your budget, how well you shop the market, and the expertise of your insurance team. For the diverse and fast-paced New York real estate scene, we recommend a well-rounded fix and flip policy that covers property, general liability, business interruption, and—when required—flood risk.

Working with an agency that specializes in New York fix and flip insurance, with access to many carriers, ensures you get the best coverage and price. Ready to get your fix and flip insurance quote for your next New York property?

How to Get Fix and Flip Insurance Through OfferMarket in New York

OfferMarket simplifies the insurance process for New York real estate investors by linking you directly with underwriters who understand the ins and outs of flipping properties in the state.

The OfferMarket Advantage in New York:

Rapid quotes, usually within 24 hours
Custom policies available for 1-100+ New York properties
Flexible support for various ownership structures: individuals, LLCs, corporations, and trusts
Expertise in complying with New York lenders’ unique guidelines
Competitive pricing from top-rated carriers serving New York
Instant certificate of insurance (COI) generation
Secure online record-keeping for your insurance documents

Insurance Requirements for New York Fix and Flip Loans

Most New York fix and flip lenders will require:

Property coverage at least equal to the loan amount
General liability of $1M+ per occurrence
Named insured and loss payee endorsements
Proof of insurance prior to closing
Ongoing coverage throughout the loan term

Failure to keep adequate coverage can result in:

Loan default
Forced-placed (and expensive) insurance
Personal liability for losses

OfferMarket coordinates with your lender throughout underwriting and after closing—especially streamlined if you use OfferMarket Capital for your New York fix and flip or DSCR loans.

How to Structure Coverage for a New York Multi-Property Portfolio

If you’re managing more than one project at a time across New York, consider:

Blanket policies: One policy, multiple properties
Scheduled policies: Each property listed with specific limits and premiums
Master policies: Bundles various coverages (vacant property, builder’s risk, etc.) into a single invoice

OfferMarket helps high-volume New York flippers lower their insurance costs and simplify administration across their portfolios.

Fix and Flip Insurance Checklist for New York

Make sure your New York fix and flip project is fully protected:

✅ Full replacement cost property insurance
✅ General liability of at least $1M
✅ Vacant property endorsement included
✅ Builder’s risk for your renovation period
✅ Tools and equipment coverage if needed
✅ Policy lists your lender as loss payee
✅ Flood or earthquake coverage if required
✅ Policy start and end dates match your project schedule
✅ Certificate of insurance issued and stored

Fix and Flip Insurance Guidelines for New York

Below are best-practice insurance coverage guidelines, often required by New York fix and flip lenders:

Property Coverage

AM Best Rating	A- VIII or greater
Term	1 Year
Limits	Replacement Cost or Loan Amt
Deductible	$5,000
Accepted Policy Types	Dwelling Fire (Special Form), Commercial Property (Basic/Special Form)
Cancellation Notice	30 days
Exclusions	No windstorm/hail/named storm exclusion
Lender’s Designation	Mortgagee

General Liability Coverage

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 Notice	30 days
Lender’s Designation	Additional Insured

Business Interruption Insurance

AM Best Rating	A- VIII or greater
Term	1 Year
Limits	One year effective gross rental revenue
Coverage Details	Actual Loss Sustained basis
Cancellation Notice	30 days
Lender’s Designation	Mortgagee

Flood Insurance (If Applicable)

AM Best Rating	A- VIII or greater
Term	1 Year
Limits	Greater of $250,000 or loan balance
Cancellation Notice	30 days
Lender’s Designation	Mortgagee

Additional Details

Item	Description
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 must maintain "all risk" coverage for common areas, fixtures, personal property, equipment at 100% of 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 must maintain "all risk" coverage for common areas, fixtures, personal property, equipment at 100% of insurable value on a replacement cost basis.
Instructions	- Use ACORD form for compliance - Send insurance certifications, invoices, or paid receipts at least 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 for the entire period of vacancy

Why Choose OfferMarket for Fix and Flip Insurance in New York?

OfferMarket is the trusted choice for thousands of New York real estate investors and private lenders. Our all-in-one platform removes friction at every stage—from acquiring, to financing, to insuring your next New York property.

What Sets OfferMarket Apart in New York?

Real-time deal and insurance management
Dedicated support team that knows the New York market
Integrated lending, insurance, and deal sourcing
No more wasting time comparison shopping—we do it for you
Smart matching with New York-friendly insurance carriers

Frequently Asked Questions – Fix and Flip Insurance in New York

Do I need insurance before closing on a flip in New York?

Yes. Your lender—or title company, if paying cash—will require insurance proof before closing. OfferMarket can issue your certificate within hours.

Can I insure a property already under renovation?

Yes, but you must disclose all work underway. Some carriers may inspect or limit coverage if you’re already renovating.

What if I sell the property early?

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

Can I cover multiple New York flips with one policy?

Absolutely. Portfolio policies simplify management and save money for high-volume New York investors.

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

Some policies may not cover active tenants; in that case, you’ll need a landlord or hybrid policy designed for temporary occupancy.

How does OfferMarket Insurance work?

OfferMarket shops for the most competitive fix and flip insurance policy that meets your personal preferences and lender’s guidelines—always double-checked by our New York insurance experts.

Can I use my own insurance agent?

Yes, as long as they’re equipped to handle commercial fix and flip coverage and follow lender requirements. However, most New York investors prefer our specialized and streamlined process for speed and savings.

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

Yes—insurance premiums can be paid on the settlement statement or directly through your agent, but proof of payment is required before closing.

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

Most New York lenders don’t require escrow, but you are responsible for keeping the policy in force and renewing as needed. If you cancel early, you’ll receive a pro-rated refund.

What is an AM Best Rating?

AM Best evaluates the financial strength of insurers. Your New York policy should be with a carrier rated A- VIII or better.

What is builder’s risk insurance?

Builder’s risk covers your New York property and construction materials during renovation. It ends when you sell, the building is occupied, or 90 days after completion.

Protect and Grow Your New York Real Estate Portfolio with OfferMarket

Fix and flip insurance in New York isn’t an extra—it’s a necessity. With slim margins, tough timelines, and unpredictable city or upstate risks, smart investors know that protecting the downside is just as important as chasing profits. Whether you’re flipping a single condo in Chelsea or managing a portfolio of Brooklyn brownstones, OfferMarket’s insurance solutions scale to fit your needs.

OfferMarket is a real estate investing platform serving New York and nationwide, built to help rental property investors—especially those handling 1-4 unit properties—build wealth through real estate.

What We Offer:

☂️ 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.

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