Fix and Flip Insurance Rhode Island
Last updated: October 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 also called renovation or builder’s risk insurance is a tailored policy built for real estate investors in Rhode Island who buy homes to renovate and resell. Unlike standard homeowner coverage, this insurance takes into account vacant dwellings, active construction, and changing ownership factors that are normal in fix and flip and BRRRR projects throughout the Ocean State.
From early-career investors tackling their first two-family in Pawtucket, to experienced rehabbers flipping multiple properties in Providence, Cranston, or Warwick, fix and flip insurance is vital. It safeguards your capital, shields against liability, and supports your timeline no matter the size or scope of the renovation.
Fix and flip insurance premiums have surged across Rhode Island, climbing more than 25% over the last year and a half. This trend can squeeze your margins and put deals at risk. At OfferMarket, we’ve analyzed hundreds of fix and flip policies across our private lending and insurance rate shopping teams. Our data shows that many Rhode Island investors are overpaying by as much as 33% compared to what’s actually required by lenders and smart risk practices.
Why is this happening? Most real estate investors in RI are working with insurance agents who lack expertise in commercial real estate policies. Many agents are also paid a percentage of your premium, giving them a financial incentive to offer costlier options. Even when they have good intentions, if they only represent one carrier or don’t specialize in investment properties, the result is usually the same: overpriced coverage.
That’s why we built OfferMarket Insurance, a fast, powerful rate shopping platform that lets you compare 40+ carriers in under a minute. Your quote is carefully reviewed by our team of fix and flip insurance experts who know how to lower premiums for 1–4 unit residential properties across Rhode Island. Every month we save real estate investors thousands of dollars. We’re ready to help you save too.
Fix and Flip Insurance Markets
Wherever your rehab project is located, we’ve got you covered.
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Fix and Flip Insurance Rhode Island: Coverage Areas
Wherever your Rhode Island rehab is based, our insurance network has you covered:
- Providence
- Warwick
- Cranston
- Pawtucket
- East Providence
- Woonsocket
- Coventry
- And beyond
Our specialized coverage spans the diverse landscapes and neighborhoods unique to Rhode Island.
Why You Need Fix and Flip Insurance
1. Vacant Properties Are High Risk
In Rhode Island, many properties targeted for flipping sit vacant before renovations begin. Unfortunately, standard homeowner policies often lapse or exclude coverage on unoccupied homes. These properties are magnets for break-ins, theft, and unnoticed damages like a burst pipe during a frigid New England winter or an electrical fire from faulty wiring.
2. Construction and Renovation Risks
From replacing roof shingles in Middletown to tearing down drywall in Central Falls, the renovation process brings all kinds of hazards:
- Structural collapse
- On-site injuries
- Fire from temporary wiring or open flame tools
- Theft of copper piping, tools, and appliances
Fix and flip insurance is purpose-built to cover these issues, from demo day to listing.
3. Liability Protection
If a contractor slips on an icy front step in Woonsocket, or a trespasser injures themselves on your renovation site in Narragansett, you could be liable. With proper general liability coverage included in your fix and flip insurance, you’re protected from lawsuits, legal expenses, and injury claims.
What Does Fix and Flip Insurance Cover?
Fix and flip insurance can be tailored to match the unique demands of each renovation project. Here’s a breakdown of what your policy may include:
Property Coverage
Covers the structure and on-site materials from risks like:
| Covered Risks |
|---|
| Fire |
| Vandalism |
| Burglary |
| Lightning |
| Wind, hail |
| Water damage (non-flood) |
General Liability
Covers you against legal claims and injury-related lawsuits, such as:
- Slip and fall injuries
- Accidents involving contractors
- Damage to neighboring homes
Builder’s Risk
Often bundled within property coverage, builder’s risk protects against damage to the structure under renovation, materials being stored, and new additions being installed.
Vacant Property Endorsement
Many Rhode Island investors work with unoccupied buildings. This endorsement ensures your policy stays valid—even when the property is temporarily vacant.
Tools and Equipment
Optional coverage to reimburse for stolen or damaged equipment and tools left on-site or in transit.
Ordinance or Law Coverage
Rhode Island’s local codes often require updates after a loss. This add-on covers the cost of bringing your property up to modern standards, including demolition and rebuild expenses if needed.
Loss of Rents
If you're planning to rent the property post-rehab (as with BRRRR deals in Providence or Cumberland), this coverage protects your projected rental income in the event of a loss. It's especially important for properties with existing tenants during renovation or where delays could jeopardize leasing.
What is NOT Covered?
Fix and flip insurance policies in Rhode Island, like elsewhere, have exclusions. These may include:
- Wear and tear or poor workmanship
- Flood damage (requires separate flood policy)
- Earthquake damage (optional rider may be required)
- Intentional harm or fraudulent claims
- Government action or war-related losses
Always carefully review your policy’s exclusions with your insurance expert.
Who Needs Fix and Flip Insurance?
Fix and flip insurance is suited for:
- Individual real estate investors
- House flippers
- Real estate partnerships and LLCs
- Wholesalers executing a double close
- Private lenders looking to protect their collateral
Whether you're flipping a cozy Cape Cod in Bristol or a colonial duplex in Providence, Rhode Island’s market demands protection and fix and flip insurance is your safety net.
How Much Does Fix and Flip Insurance Cost?
The cost of fix and flip insurance in Rhode Island depends on a variety of local and project-specific factors, including:
- Location within the state (urban vs rural)
- Property value
- Scope of work (extent and complexity of renovations)
- Project duration
- Coverage amounts
- Deductibles chosen
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:
If you sell or refinance before the policy ends, you may be eligible for a pro-rated refund of the unused premium. Many investors in Rhode Island do this when exiting a flip or refinancing into a DSCR loan.
Bundling policies for multiple properties under one "portfolio policy" can lead to significant per-property savings.
Best Fix and Flip Insurance for Rhode Island Investors
Rhode Island investors have many options when choosing an insurance provider but not all are equal. You need a policy that balances cost, risk, and lender requirements. That’s why we recommend a comprehensive plan that includes:
- Property coverage
- General liability
- Business interruption (especially for BRRRR strategies)
- Flood insurance (if located in a flood-prone coastal area like Westerly or Newport)
The best policies come from agencies that specialize in real estate investment insurance and have access to a wide range of carriers. This ensures that you’re not stuck overpaying or under covered.
With OfferMarket, you get fast quotes, sharp pricing, and smart service, so you can focus on building your portfolio while we handle the protection.
How to Get Fix and Flip Insurance Through OfferMarket
OfferMarket makes getting insured in Rhode Island easy. We’ve built a streamlined experience that connects investors with knowledgeable underwriters who specialize in flips and BRRRR projects.
The OfferMarket Advantage:
- Fast, accurate quotes in 24 hours
- Custom coverage for single properties or entire portfolios
- Support for title in personal name, LLC, trust, or corporate entities
- Compliance with all lender insurance requirements
- Best-in-class pricing through top-tier insurance carriers
- Instant COI (Certificate of Insurance) generation
- Secure online Insurance File for document storage
Insurance Requirements for Fix and Flip Loans
Most Rhode Island lenders, whether local hard money shops or national fix and flip lenders will require:
- Property insurance that at least covers the loan amount
- General liability coverage (commonly $1,000,000 per incident or more)
- Lender listed as named insured and loss payee
- Proof of insurance prior to closing
- Continued active coverage through the entire loan term
Failing to meet these requirements could lead to:
- Loan default
- Forced-placed insurance (at higher premiums)
- Personal financial liability for damages
OfferMarket helps investors avoid these pitfalls by coordinating directly with your lender to ensure all insurance paperwork and certificates are accurate and submitted on time.
How to Structure Coverage for a Multi-Property Portfolio
For Rhode Island investors managing more than one flip at a time, insurance costs and logistics can become complex. That’s where the right policy structure comes in.
You can choose from:
- Blanket Policy: One policy that covers every property under your ownership.
- Scheduled Policy: Each property is listed separately with individual limits.
- Master Policy: Combines different coverages (like builder’s risk and vacant property) into one invoice.
OfferMarket helps streamline large or growing portfolios by minimizing per-property expense and centralizing your coverage documents in one simple dashboard.
Fix and Flip Insurance Checklist
Use this checklist to ensure your Rhode Island project is fully covered:
| Requirement | Status |
|---|---|
| Property insurance equals full replacement cost | ✅ |
| General liability at or above $1M per occurrence | ✅ |
| Vacant property endorsement included | ✅ |
| Builder’s risk added for renovation phase | ✅ |
| Tools and equipment coverage if needed | ✅ |
| Lender listed as loss payee | ✅ |
| Flood or earthquake coverage if required | ✅ |
| Policy dates match your rehab timeline | ✅ |
| Certificate of insurance issued and stored securely | ✅ |
Fix and Flip Insurance Guidelines
Below are the most common insurance coverage guidelines required by Rhode Island lenders for fix and flip loans (commonly known as hard money loans). These standards are based on risk management best practices.
Property Coverage
| Category | Requirement |
|---|---|
| Property Insurance | Yes (mandatory) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | - Replacement Cost (based on appraisal or RCE) - Loan Amount (if less than RC, requires Agreed Value or zero coinsurance) |
| Deductible | $5,000 |
| Accepted Policy Types | - Dwelling Fire (“Special Form”) - Commercial Property (“Basic” or “Special Form”) |
| Cancellation Notice | 30 days' Notice |
| Exclusions Not Allowed | - No windstorm/hail exclusion - No named storm exclusion |
| Lender’s Designation | Mortgagee |
General Liability Coverage
| Category | Requirement |
|---|---|
| General Liability | Yes (mandatory) |
| 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-based policy |
| Cancellation Notice | 30 days' Notice |
| Lender’s Designation | Additional Insured |
Business Interruption Insurance
Business interruption coverage is particularly valuable for Rhode Island BRRRR investors who may be renting the property during or after rehab.
| Category | Requirement |
|---|---|
| Business Interruption | Yes (mandatory) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | One year of effective gross rental income |
| Coverage Details | Actual Loss Sustained basis accepted |
| Cancellation Notice | 30 days' Notice |
| Lender’s Designation | Mortgagee |
Flood Insurance
If your Rhode Island property is in a designated FEMA special flood hazard zone (e.g., parts of Westerly, Newport, or Barrington), your lender will likely require flood insurance.
| Category | Requirement |
|---|---|
| Flood Insurance | Yes (if property is in flood zone) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Greater of $250,000 or loan amount |
| Cancellation Notice | 30 days' Notice |
| Lender’s Designation | Mortgagee |
Additional Details
| Requirement | Details for Rhode Island Investors |
|---|---|
| Lender Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos | - Blanket policy may be used if the individual unit is included - HOA must maintain “all risk” coverage at 100% of insurable value |
| Planned Unit Developments | - Blanket policy may be used if unit is included - HOA must maintain “all risk” coverage at 100% of insurable value |
| Compliance Instructions | - Use ACORD form - Submit insurance certifications, invoices, or receipts no later than 24 hours before closing - Submit final policy documents within 60 days post-closing |
| Vacancy Notice | If the property becomes vacant, notify your carrier and obtain a vacancy permit for the entire vacant period |
Why Choose OfferMarket for Fix and Flip Insurance?
OfferMarket is the trusted insurance partner for real estate investors and private lenders across Rhode Island. From East Greenwich to Tiverton, we’ve built a platform that simplifies property acquisition, financing, and insurance. Helping you close faster with less hassle.
What Sets Us Apart:
- Real-time insurance and deal management in one place
- Dedicated investor support team that understands Rhode Island market
- Integrated platform for lending, insurance, and off-market property access
- We compare 40+ carriers to find you the best rate
- We match you with insurers who love working with flippers
Frequently Asked Questions
Do I need insurance before closing on a flip?
Yes. Whether you're buying in cash or financing with a fix and flip loan, your title company or lender will require proof of insurance before settlement. OfferMarket can issue a certificate of insurance in just a few hours.
Can I get insurance even if the property is already under renovation?
Absolutely. Just make sure to disclose all active renovation work. Some carriers might limit certain coverages or require a property inspection.
What if I sell the property early?
No problem. You can cancel your policy early and receive a refund for the unused premium, usually calculated on a pro-rata basis.
Can I insure multiple flips under one policy?
Yes. Portfolio policies are available and commonly used by investors flipping several properties throughout Rhode Island.
What if I’m renting out a unit during the renovation?
Some carriers won’t cover tenant-occupied units under a fix and flip policy. In that case, you’ll need a landlord or hybrid policy to protect your asset.
How does OfferMarket Insurance work?
We’re a rate shopping platform tailored to real estate investors. We match your project to competitive, lender-compliant insurance policies from top carriers. Our specialists review your preferences and lender requirements to ensure your policy hits every target—at the best price.
Can I use my preferred insurance agent for my fix and flip loan?
Yes, if your agent can meet commercial fix and flip policy requirements. That said, agents unfamiliar with commercial or investment coverage can cause delays. For speed and savings, many investors choose to work with OfferMarket Insurance.
Can I pay for insurance on the HUD-1/ALTA statement at closing?
Yes. Either pay through your insurance agent and provide a paid receipt or include it in your closing statement. Rhode Island lenders will require confirmation of payment prior to funding.
Do I need to escrow my insurance premium?
In most cases, no. Rhode Island lenders typically do not escrow fix and flip premiums. If your rehab runs past 12 months, you may need to show proof of renewal. When you cancel a policy early, you’ll be refunded on a pro-rated basis.
What is an AM Best Rating?
It’s an independent assessment of an insurance company’s financial strength. All policies should be placed with carriers rated A- VIII or higher.
What is builder’s risk insurance?
It covers your property and materials during the renovation. Builders risk usually ends when the project is sold, completed, or occupied.
Covered items include:
- Structure during construction
- Stored and delivered materials
- Foundation and systems
Coverage ends when:
- Title transfers to a buyer
- The project is completed and occupied
- Construction is abandoned
Most builder’s risk policies are “Completed Value Form” where coverage equals the ARV or replacement cost.
Protect and Grow Your Rhode Island Portfolio with OfferMarket
Fix and flip insurance isn’t optional, it’s essential. With tight project margins, fast-moving timelines, and inevitable surprises, Rhode Island investors know protection is as important as profit.
Whether you flip one single-family in Providence or manage a dozen rehabs from Westerly to Woonsocket, OfferMarket’s fix and flip insurance solutions are built to scale with you.
OfferMarket is a real estate investing platform focused on 1–4 unit residential investors. Our mission is to help you grow wealth through smarter property investment. We hope you will accept our invitation to join us and over 20,000 registered members.
Membership is entirely free and comes with the following benefits:
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