Fix and Flip Insurance Pennsylvania
Last updated: October 13, 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, also known as renovation insurance or builder’s risk insurance, is a specialized policy designed to protect real estate investors who purchase properties in Pennsylvania 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 across Pennsylvania, fix and flip insurance is essential for protecting your investment capital, liability exposure, and resale timeline.
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 in Pennsylvania, we’ve got you covered.
- Fix and Flip Insurance Alabama
- Fix and Flip Insurance Alaska
- Fix and Flip Insurance Arizona
- Fix and Flip Insurance Arkansas
- Fix and Flip Insurance California
- Fix and Flip Insurance Colorado
- Fix and Flip Insurance Connecticut
- Fix and Flip Insurance Delaware
- Fix and Flip Insurance Florida
- Fix and Flip Insurance Georgia
- Fix and Flip Insurance Hawaii
- Fix and Flip Insurance Idaho
- Fix and Flip Insurance Illinois
- Fix and Flip Insurance Indiana
- Fix and Flip Insurance Iowa
- Fix and Flip Insurance Kansas
- Fix and Flip Insurance Kentucky
- Fix and Flip Insurance Louisiana
- Fix and Flip Insurance Maine
- Fix and Flip Insurance Maryland
- Fix and Flip Insurance Massachusetts
- Fix and Flip Insurance Michigan
- Fix and Flip Insurance Minnesota
- Fix and Flip Insurance Mississippi
- Fix and Flip Insurance Missouri
- Fix and Flip Insurance Montana
- Fix and Flip Insurance Nebraska
- Fix and Flip Insurance Nevada
- Fix and Flip Insurance New Hampshire
- Fix and Flip Insurance New Jersey
- Fix and Flip Insurance New Mexico
- Fix and Flip Insurance New York
- Fix and Flip Insurance North Carolina
- Fix and Flip Insurance North Dakota
- Fix and Flip Insurance Ohio
- Fix and Flip Insurance Oklahoma
- Fix and Flip Insurance Oregon
- Fix and Flip Insurance Pennsylvania
- Fix and Flip Insurance Rhode Island
- Fix and Flip Insurance South Carolina
- Fix and Flip Insurance South Dakota
- Fix and Flip Insurance Tennessee
- Fix and Flip Insurance Texas
- Fix and Flip Insurance Utah
- Fix and Flip Insurance Vermont
- Fix and Flip Insurance Virginia
- Fix and Flip Insurance Washington State
- Fix and Flip Insurance Washington State
- Fix and Flip Insurance West Virginia
- Fix and Flip Insurance Wisconsin
- Fix and Flip Insurance Wyoming
Fix and Flip Insurance Pennsylvania: Coverage Areas
Wherever your Pennsylvania rehab is based, our insurance network has you covered:
- Philadelphia
- Pittsburgh
- Allentown
- Erie
- Reading
- Scranton
- Bethlehem
- And beyond
Our specialized coverage spans the diverse landscapes and neighborhoods unique to Pennsylvania.
Why You Need Fix and Flip Insurance in Pennsylvania
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:
| Covered Risks |
|---|
| Fire |
| Vandalism |
| Theft |
| Lightning |
| Wind, 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 Pittsburgh or a $2,000,000 luxury home in the Philadelphia suburbs, 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 for Pennsylvania Investors
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
How to Structure Coverage for a Multi-Property Portfolio in Pennsylvania
If you’re flipping more than one property at a time in Pennsylvania—whether in Philadelphia, Harrisburg, or the growing suburbs of Lehigh Valley—you should consider optimizing your coverage for scale and efficiency.
Blanket Policies: One single policy to cover all your investment properties in Pennsylvania. This is especially helpful if you're juggling multiple active rehabs across the state.
Scheduled Policies: Each property is listed individually with its own limits and premiums. This approach is often used when project sizes and risks vary significantly from one property to another—such as a townhouse in Reading and a duplex in Scranton.
Master Policies: A comprehensive policy that merges various types of coverages—like builder’s risk and vacant property insurance—into one streamlined package, ideal for high-volume Pennsylvania investors.
OfferMarket specializes in helping real estate investors in Pennsylvania reduce insurance costs while simplifying admin work. Whether you’re managing a few rowhomes in Pittsburgh or a portfolio across Lancaster, Allentown, and Erie, we can tailor the right structure.
Fix and Flip Insurance Checklist
Use this checklist to make sure your Pennsylvania fix and flip project is fully protected:
| Requirement | Status |
|---|---|
| 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 are common fix and flip insurance guidelines for Pennsylvania-based fix and flip loans. These limits are considered standard from a risk management standpoint.
Property Coverage
| Requirement | Details |
|---|---|
| Mandatory | Yes (mandatory) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Replacement cost or loan amount (Agreed Value or zero coinsurance if lower) |
| Deductible | $5,000 |
| Accepted Policy Types | Dwelling Fire (Special Form), Commercial Property (Basic/Special Form) |
| Cancellation Notice | 30 days’ notice |
| Exclusions | No windstorm/hail or named storm exclusions |
| Lender Designation | Mortgagee |
General Liability Coverage
| Requirement | Details |
|---|---|
| Mandatory | Yes (mandatory) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | $1M per occurrence / $2M aggregate |
| Deductible | $1,000 |
| Coverage Basis | Occurrence basis |
| Cancellation Notice | 30 days’ notice |
| Lender Designation | Additional Insured |
Business Interruption Insurance
This is recommended especially if you're renting out parts of your Pennsylvania property during renovations.
| Requirement | Details |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | One year of gross rental revenue |
| Coverage Basis | Actual Loss Sustained |
| Cancellation Notice | 30 days’ notice |
| Lender Designation | Mortgagee |
Flood Insurance
Required for properties in FEMA special flood hazard zones—common in areas near the Delaware River or coastal PA zones.
| Requirement | Details |
|---|---|
| Mandatory | Yes (If in flood zone) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Greater of $250K or loan balance |
| Cancellation Notice | 30 days’ notice |
| Lender Designation | Mortgagee |
Additional Details
Lenders require their mortgagee clause on your policy, such as:
| Requirement | Details for Pennsylvania Investors |
|---|---|
| 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. - Homeowners association maintains “all risk” coverage for common areas, fixtures, personal property, and 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. - Homeowners association maintains “all risk” coverage for common areas, fixtures, personal property, and 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 in Pennsylvania?
OfferMarket is the go-to partner for real estate investors across Pennsylvania from the revitalized neighborhoods of York and Lancaster to the booming outskirts of Philly. We’re built to streamline not just insurance, but every stage of your investment process.
What Sets Us Apart:
- Real-time platform for deal and insurance management
- A support team that speaks “investor”
- Integrated insurance, lending, and exclusive off-market deal flow
- No wasted time shopping carriers—we handle it for you
- Matched with investor-friendly insurers
Frequently Asked Questions
Do I need insurance before closing on a flip?
Yes. Your lender (or title company if paying cash) will require proof of insurance. OfferMarket can provide your certificate within hours.
Can I get insurance even if the property is already under renovation?
Yes, but be sure to disclose existing work. Some insurers may require inspections or adjust coverage.
What if I sell the property early?
You can cancel the policy early and receive a pro-rated refund.
Can I insure multiple flips under one policy?
Yes. Portfolio policies are a great way to reduce cost and streamline management.
What if I’m also renting out a unit before the flip?
Some carriers won’t allow active tenants under fix and flip coverage. You may need a landlord or hybrid policy.
How does OfferMarket Insurance work?
OfferMarket Insurance is a shopping platform for investor-grade insurance. We review your needs and match you with the most cost-effective, compliant coverage.
Can I use my own insurance agent?
Yes, if they understand commercial fix and flip policies. That said, many agents lack the expertise—especially in PA—so we recommend working with our specialists to avoid delays and cost overruns.
Can I pay for insurance on the HUD-1/ALTA statement?
Yes. Fix and flip loans require full payment of insurance at closing, either via HUD or a direct paid invoice.
Do I need to escrow my fix and flip insurance premium?
Most PA lenders won’t require escrow, but you’ll be responsible for policy renewal if the project exceeds 12 months. Refunds are available for early cancellation.
What is an AM Best Rating?
A financial strength score for insurance companies. We only work with carriers rated A- VIII or better.
What is builder’s risk insurance?
Covers your property and materials during the renovation period. It ends when:
- The property is sold
- 90 days have passed since construction ended
- The property is occupied
- You abandon the project
Protect and Grow Your Pennsylvania Portfolio
Fix and flip insurance in Pennsylvania isn’t optional, it’s essential. From urban rehabs in Allentown to townhomes in Lancaster, the risks are real. With tight timelines, market competition, and unpredictable issues, protecting your downside is key.
Protect your capital. Protect your reputation. Protect your future. OfferMarket is committed to helping real estate investors across the Keystone State build wealth.
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