Fix and Flip Insurance Tennessee
Last updated: October 15, 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, often referred to as renovation insurance or builder’s risk insurance, is a tailor-made policy crafted for real estate investors purchasing properties in Tennessee with the intent to renovate and quickly resell for profit. Unlike your typical homeowners insurance, this specialized coverage accounts for the nuances of Tennessee’s fix and flip and BRRRR projects vacant homes, active construction zones, and rapid ownership turnovers.
Whether you’re flipping a shotgun house in East Nashville or rehabbing a duplex in Memphis, fix and flip insurance is critical for safeguarding your renovation capital, managing liability, and protecting your timeline to resale.
Fix and flip insurance premiums in Tennessee have surged by over 25% in the past 18 months tightening margins for investors across the state. At OfferMarket, we actively analyze hundreds of fix and flip policies annually through our private lending and insurance rate comparison platforms. We’ve found that Tennessee investors are frequently quoted policies with premiums inflated by nearly 33% beyond what’s required by their lenders or risk exposure.
This often happens when investors rely on insurance agents lacking expertise in commercial or investment property policies. Many agents, incentivized by commissions, quote overpriced policies often from a single carrier and without shopping competitively across the market. Even well-meaning agents may miss the mark if they lack real estate investment specialization.
That’s why we developed the OfferMarket Insurance platform. In under 60 seconds, Tennessee investors can compare quotes from 40+ top carriers. Every policy is vetted by our expert team focused on delivering value to residential real estate investors working on 1 to 4 unit properties. Our clients save thousands each month—let us help you maximize your Tennessee returns.
Fix and Flip Insurance Markets
No matter where your renovation is happening in Tennessee, from Chattanooga to Clarksville, we’ve got you covered.
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Fix and Flip Insurance Tennessee: Coverage Areas
Wherever your Tennessee rehab is based, our insurance network has you covered:
- Nashville
- Memphis
- Knoxville
- Chattanooga
- Clarksville
- Murfreesboro
- Franklin
- And beyond
Our specialized coverage spans the diverse landscapes and neighborhoods unique to Tennessee.
Why You Need Fix and Flip Insurance
1. Vacant Properties Are High Risk
Most flip projects in Tennessee begin with a home sitting empty. Standard homeowners insurance often excludes or cancels coverage for unoccupied homes, leaving you vulnerable to risks like break-ins, copper theft, fires, or water damage that goes unnoticed.
2. Construction and Renovation Risks
From replacing HVAC systems in Murfreesboro to gutting kitchens in Knoxville, every Tennessee renovation involves risk. These include:
- Structural issues
- Job site accidents
- Fire hazards from faulty wiring or equipment
- Theft of materials left on-site
Fix and flip insurance is built to handle these exposures, offering coverage throughout every rehab phase.
3. Liability Protection
If someone is injured at your Tennessee rehab whether a contractor, subcontractor, or trespasser you could face costly medical bills or lawsuits. Comprehensive fix and flip insurance includes general liability coverage to protect your finances and your project.
What Does Fix and Flip Insurance Cover?
Fix and flip insurance is highly adaptable. Most Tennessee investors choose coverage combinations such as:
Property Coverage
Protects the structure and materials from common risks such as:
| Covered Risks |
|---|
| Fire |
| Vandalism |
| Theft |
| Lightning strikes |
| Wind damage |
| Non-flood water damage |
General Liability
Coverage for injuries or property damage to third parties, including:
- Slip and fall incidents
- Injuries to visitors or contractors
- Claims from neighboring properties affected by your project
Builder’s Risk
Often packaged with property coverage, this includes:
- Structure under renovation
- Building materials on-site or in transit
- Recently installed upgrades like flooring, cabinetry, or HVAC
Vacant Property Endorsement
Guarantees your coverage stays valid while your Tennessee property sits unoccupied during the project.
Tools and Equipment
Optional but useful, this covers damage or theft of tools and rented equipment left at the site.
Ordinance or Law Coverage
If local Tennessee code changes require you to modify existing structures after a loss, this coverage helps with:
- Demolition
- Code-compliant rebuilding
- Upgrades to meet local laws
Loss of Rents
If your rehab project becomes a BRRRR strategy or includes existing tenants, Loss of Rent coverage helps offset lost income due to a covered claim. Ideal for multi-unit or mixed-use Tennessee properties.
What is NOT Covered?
Be aware of standard exclusions in most Tennessee fix and flip policies:
- General wear and tear or faulty construction
- Flood damage (separate flood insurance required)
- Earthquake damage (may need a rider)
- Intentional damage or misrepresentation
- War-related losses or government action
Always review your exclusions closely and consult your agent to ensure you’re properly covered.
Who Needs Fix and Flip Insurance?
Fix and flip insurance is essential for anyone involved in Tennessee real estate flips:
- Solo investors flipping bungalows in Memphis
- LLCs flipping townhomes in Franklin
- Wholesalers closing on properties before resale
- Private lenders financing Chattanooga renovations
From modest homes to luxury flips in Brentwood, if you’re investing in Tennessee, this insurance helps you manage risk smartly.
How Much Does Fix and Flip Insurance Cost?
Your Tennessee fix and flip insurance premium will vary based on several key factors:
- Location of the property, urban zones like Nashville vs rural counties
- Property value and square footage
- Scope of work: light cosmetic refresh vs full gut renovation
- Projected rehab timeline
- Coverage limits and deductibles you select
Sample Premium Estimates
| 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:
Tennessee policies often allow for pro-rated refunds when canceled early due to property resale or refinance. Many flippers switch to landlord policies upon refinancing into a DSCR loan.
Bundling multiple Tennessee projects under one policy (“portfolio policy”) can also reduce your per-property insurance costs.
Best Fix and Flip Insurance in Tennessee
You have plenty of insurance options in Tennessee, but not all are equal.
Finding the best fix and flip insurance means weighing:
- The risks you’re comfortable retaining
- Your premium tolerance
- How thoroughly you shop for quotes
- The responsiveness and expertise of your insurance advisor
We recommend choosing a policy that includes:
- Property insurance
- General liability
- Business interruption insurance
- Flood insurance (if required by FEMA mapping)
Working with a Tennessee savvy insurance provider that specializes in investor focused fix and flip policies and has access to dozens of carriers will ensure you secure the right coverage at the best value.
How to Get Fix and Flip Insurance Through OfferMarket
OfferMarket makes getting fix and flip insurance in Tennessee simple. Our process connects you with top underwriters who understand local real estate dynamics and project nuances.
The OfferMarket Advantage for Tennessee Investors:
- Quotes within 24 hours
- Tailored policies for single or multiple properties
- Flexible ownership support: LLCs, Trusts, LPs, S-Corps, C-Corps, and personal names
- Meets lender-specific insurance requirements
- Highly competitive pricing from reputable carriers
- Instant Certificate of Insurance (COI) issuance
- Secure Insurance File record-keeping system
You’ll benefit even more if you combine your fix and flip loan or DSCR loan through OfferMarket Capital. We handle the insurance and lending coordination for a seamless underwriting and closing experience.
Insurance Requirements for Fix and Flip Loans
Whether you're flipping homes in Knoxville or leveraging DSCR loans in Nashville, most Tennessee lenders will require the following insurance conditions:
- Property coverage equal to or greater than the loan amount
- General liability with at least $1M per occurrence
- Proof of insurance provided before loan closing
- Ongoing coverage through the loan’s duration
- Named insured and lender listed as loss payee
Failure to maintain proper insurance may result in:
- Loan default
- Forced-placed insurance
- Personal liability
At OfferMarket, we streamline this process by coordinating directly with your lender to ensure full compliance and peace of mind.
How to Structure Coverage for a Multi-Property Portfolio
Tennessee investors flipping multiple properties at once should consider consolidating coverage. OfferMarket offers flexible insurance structures such as:
- Blanket Policies: One policy covering all properties
- Scheduled Policies: Each property listed with individual terms
- Master Policies: One comprehensive policy with multiple components
Fix and Flip Insurance Checklist
| Requirements | Status |
|---|---|
| Full replacement cost property coverage | ✅ |
| General liability of at least $1M | ✅ |
| Vacant property endorsement | ✅ |
| Builder’s risk during rehab | ✅ |
| Equipment/tools coverage if needed | ✅ |
| Lender listed as loss payee | ✅ |
| Flood/earthquake insurance if applicable | ✅ |
| Coverage dates aligned with your project | ✅ |
| COI issued and stored | ✅ |
Fix and Flip Insurance Guidelines
Property Coverage
| Requirements | Status |
|---|---|
| Full replacement cost property coverage | ✅ |
| General liability of at least $1M | ✅ |
| Vacant property endorsement | ✅ |
| Builder’s risk during rehab | ✅ |
| Equipment/tools coverage if needed | ✅ |
| Lender listed as loss payee | ✅ |
| Flood/earthquake insurance if applicable | ✅ |
| Coverage dates aligned with your project | ✅ |
| COI issued and stored | ✅ |
General Liability Coverage
| Requirement | Details |
|---|---|
| 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 Basis | Occurrence |
| Cancellation Notice | 30 Days |
| Lender Designation | Additional Insured |
Business Interruption Insurance
| Requirement | Details |
|---|---|
| Mandatory | Yes (if renting during or after flip) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | 1 year gross rental revenue |
| Coverage | Actual Loss Sustained basis acceptable |
| Cancellation Notice | 30 Days |
| Lender Designation | Mortgagee |
Flood Insurance
| Requirement | Details |
|---|---|
| Mandatory | Yes (If in flood zone) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Greater of $250,000 or loan balance |
| Cancellation Notice | 30 Days |
| Lender Designation | Mortgagee |
Additional Details
Lenders require their mortgagee clause on your policy, such as:
| Requirements | Details for Tennessee Investors |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA, 627 S Hanover St, Baltimore, MD 21230 |
| Condos: Blanket Policy | Allowed if the individual unit is explicitly included in the coverage |
| Condos: HOA Coverage | Must maintain “all risk” insurance for common areas, fixtures, personal property, and equipment at 100% RCV |
| PUDs: Blanket Policy | Permissible if it includes the individual unit |
| PUDs: HOA Coverage | “All risk” insurance required for all shared areas and equipment at 100% replacement cost |
| Forms Required | Use standardized ACORD forms for all insurance submissions |
| Pre-Closing Submission | Submit insurance certificates, invoices, or paid receipts no later than 24 hours before settlement |
| Post-Closing Submission | Submit final policy documents within 60 days after closing |
| Vacancy Notification | Notify your carrier if the property becomes vacant; obtain a vacancy permit for the entire vacant period |
Why Choose OfferMarket for Fix and Flip Insurance?
OfferMarket is a trusted partner to real estate investors and private lenders across Tennessee. We don’t just help you find and finance your next flip, we make sure you’re insured properly and efficiently, without wasting time or money.
We specialize in streamlining every step of the investment journey from sourcing deals to closing loans to securing the best-fit insurance policies. For fix and flip projects in Tennessee, our process eliminates the stress of rate shopping, delays, and non compliant policies.
What Sets OfferMarket Apart:
Real-Time Deal & Insurance Platform
Manage everything from quotes to coverage in one place, with real-time updates and access.
Dedicated Investor Support
Our team knows what Tennessee investors need — and how to deliver fast, tailored solutions.
Integrated Lending and Insurance
Close your deal and activate your policy in one smooth, coordinated process.
No Wasted Time
We shop dozens of carriers to find the best policy — no need for you to chase quotes.
Smart Insurer Matching
Our platform matches you with insurers who understand fix and flip risks and timelines.
Whether you're flipping one home in Clarksville or managing a portfolio across Memphis, Nashville, and Chattanooga, OfferMarket ensures your insurance is fast, compliant, and cost-effective.
Frequently Asked Questions About Fix and Flip Insurance in Tenessee
Do I need insurance before closing on a Tennessee flip?
Yes. Whether you're paying cash or using financing, your lender or title company will require proof of insurance before closing. OfferMarket can issue a Certificate of Insurance (COI) within hours.
Can I get fix and flip insurance during renovations?
Yes, though you must disclose the current status of the work. Some carriers may require an inspection or limit certain types of coverage if the rehab is already underway.
What happens if I sell the property early?
You can cancel your policy early and receive a prorated refund for the unused portion of your premium. This is a common scenario for Tennessee flippers who sell before the original project timeline ends.
Can I bundle multiple properties into one policy?
Absolutely. OfferMarket offers portfolio and blanket policy options for Tennessee investors managing several flips at once. This approach can reduce costs and simplify administration.
What if a tenant is occupying the property during the flip?
Fix and flip insurance typically excludes coverage for properties with active tenants. If you’re renting out a unit before or during the project, you may need a hybrid or landlord policy. OfferMarket can help structure the right solution.
Can I use my preferred insurance agent?
Yes, as long as they can secure compliant commercial coverage that meets your lender's requirements. However, many personal lines agents are not equipped for investment property needs, which can delay closings. We recommend using OfferMarket Insurance for a smoother experience.
Can I pay for insurance at closing?
Yes. Most lenders allow the insurance premium to appear on the HUD-1 or ALTA settlement statement. If you pay separately through your agent, you'll need to submit a paid receipt for verification.
Do I need to escrow my insurance premium?
Most Tennessee fix and flip lenders do not require insurance escrow. It is your responsibility to ensure coverage is paid and active. If your project exceeds 12 months, you’ll need to show renewal proof for another full year.
What is an AM Best Rating?
AM Best is a credit rating agency that evaluates the financial stability of insurance carriers. OfferMarket requires a minimum A- VIII rating to ensure you’re protected by a financially sound provider.
What does builder’s risk insurance cover?
Builder’s risk insurance protects your Tennessee property during the renovation. It typically includes coverage for:
- Structures under construction
- Building materials on-site or in transit
- Fire, lightning, hail, vandalism, and theft
Coverage ends when the property is sold, occupied, or 90 days after construction is complete.
Protect and Grow Your Tennessee Portfolio with OfferMarket
Fix and flip insurance isn’t a luxury – it’s a safeguard. In a market where delays, damage, and liability risks can drain your returns, smart Tennessee investors make insurance part of their profit strategy.
Whether you're flipping a single home in Johnson City or managing dozens of rehabs across Middle Tennessee, OfferMarket provides scalable, investor-friendly solutions tailored to your needs.
Protect your capital. Protect your timeline. Protect your future!
Membership is entirely free and comes with the following benefits:
☂️ 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.
