Fix and Flip Insurance Virginia
Last updated: October 16, 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 builder’s risk or renovation insurance, is a specialized policy crafted for real estate investors in Virginia who purchase properties with the intent to renovate and resell them for profit. Unlike standard homeowners insurance, this policy is tailored to address the unique risks associated with properties undergoing renovation, including vacancy, construction hazards, and the dynamic nature of ownership changes.
Whether you're revitalizing a historic townhouse in Alexandria or modernizing a suburban home in Fairfax, fix and flip insurance is essential for safeguarding your investment, mitigating liability, and ensuring your project stays on track.
In Virginia, the cost of fix and flip insurance has seen a notable increase, mirroring national trends. Premiums have risen by over 25% in the past 18 months, directly impacting the profitability and feasibility of renovation projects. This surge is often attributed to investors obtaining policies from agencies lacking specialization in commercial insurance, leading to overpriced premiums that may not align with lender requirements or investor needs.
To address this, OfferMarket has developed an insurance rate shopping platform that allows investors to compare quotes from over 40+ carriers in under a minute. This ensures that you receive the most competitive rates tailored to your specific project requirements.
Fix and Flip Insurance Markets
Wherever your rehab project is located in Virginia, we've got you covered.
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Fix and Flip Insurance Virginia: Coverage Areas
Wherever your Virginia rehab is based, our insurance network has you covered:
- Virginia Beach
- Richmond
- Norfolk
- Chesapeake
- Arlington
- Roanoke
- Newport News
- And beyond
Our specialized coverage spans Virginia’s diverse landscapes, from coastal plains to mountain regions.
Why You Need Fix and Flip Insurance
1. Vacant Properties Are High Risk
Many fix and flip projects in Virginia commence with properties that are unoccupied. Standard insurance policies often exclude or void coverage on vacant homes due to increased risks such as vandalism, theft, and undetected damages like burst pipes or electrical fires.
2. Construction and Renovation Risks
Renovation activities, whether it's replacing a roof in Richmond or rewiring electrical systems in Norfolk, introduce various risks including:
- Structural damage
- Contractor injuries
- Fire hazards
- Theft of materials
Fix and flip insurance is designed to cover these risks throughout all phases of the renovation process.
3. Liability Protection
If a contractor or even a trespasser is injured on your job site, you could be held personally liable. A comprehensive fix and flip insurance policy includes general liability coverage to protect you from potential lawsuits and medical expenses.
What Does Fix and Flip Insurance Cover?
Fix and flip insurance policies in Virginia are highly customizable. Common coverages include:
Property Coverage
Protects the structure and materials from risks like:
| Covered Risks |
|---|
| Fire |
| Theft |
| Vandalism |
| Wind/hail |
| Lightning |
| 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 insurance 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 that may be 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
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.
What is NOT Covered?
It's crucial to understand what fix and flip insurance does not cover:
- 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
- Private lenders protecting collateral
Whether you're flipping a $150,000 townhouse in Arlington or a $500,000 colonial in Williamsburg, 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
- Length of project
- Coverage limits
- Deductibles
Example Rates in Virginia
| 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.
Bundling multiple properties under one policy can reduce your per-property cost.
Best Fix and Flip Insurance in Virginia
Choosing the right fix and flip insurance in Virginia involves balancing risk tolerance, budget, and the competitiveness of your rate shopping process. We recommend a comprehensive 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 multiple carriers will ensure you get 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
- 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 with your lender during underwriting and after closing. Your borrowing and insurance experience will be especially streamlined if you get your fix and flip loan and DSCR loan from OfferMarket Capital, our private lending division.
How to Structure Coverage for a Multi-Property Portfolio
If you’re flipping more than one property at a time in Virginia, consider:
Blanket policies: One policy that covers all properties.
Scheduled policies: Each property is listed with separate limits and premiums.
Master policies: Combines various coverages into one bill.
OfferMarket helps high-volume flippers optimize insurance costs and administration across large portfolios.
Fix and Flip Insurance Checklist
Use this checklist to ensure you’re fully protected:
| Requirements | Status |
|---|---|
| Property insurance covers full replacement cost (ARV or appraisal-based). | ✅ |
| General liability provides $1M+ per occurrence for injury/damage claims. | ✅ |
| Vacant property endorsement ensures coverage for unoccupied homes. | ✅ |
| Builder’s risk protects structure, materials, and upgrades during renovation. | ✅ |
| Tools/equipment coverage added if theft or damage risks are significant. | ✅ |
| Lender listed as loss payee to meet hard money loan requirements. | ✅ |
| Flood insurance included for FEMA zones (e.g., coastal Virginia Beach, Norfolk). | ✅ |
| Earthquake coverage considered for western Virginia (e.g., Roanoke). | ✅ |
| Policy dates and certificate of insurance (COI) align with project timeline and are filed for lender compliance. | ✅ |
Note:
- Virginia’s coastal flood and hurricane risks require flood insurance in FEMA zones.
- Vacant property coverage is critical due to vandalism risks in urban areas like Richmond.
- Optional earthquake riders are recommended for western Virginia’s low seismic risk.
Use OfferMarket’s platform to secure lender-compliant policies quickly.
Fix and Flip Insurance Guidelines
Below are the typical coverage requirements for fix and flip loans—commonly referred to as hard money loans. These guidelines represent industry best practices designed to reduce risk and ensure compliance for investors operating in Virginia’s real estate market.
Property Coverage
| Requirement | Details |
|---|---|
| Property Insurance | Required |
| AM Best Rating | A- VIII or higher |
| Policy Term | 12 months |
| Coverage Limits | - Must match full replacement value (based on appraisal or estimator) - If less than loan amount, policy must be "Agreed Value" or have zero coinsurance |
| Deductible | $5,000 |
| Accepted Policy Types | - Dwelling Fire (must be “Special Form”) - Commercial Property (must be “Basic” or “Special Form”) |
| Cancellation Notice | 30 days |
| Coverage Exclusions | - No exclusions for wind or hail - No named storm exclusions |
| Lender Designation | Must list lender as Mortgagee |
General Liability Coverage
| Requirement | Details |
|---|---|
| Mandatory | YES |
| AM Best Rating | A- VIII or higher |
| Policy Term | 12 months |
| Coverage Limits | - $1,000,000 per occurrence - $2,000,000 total aggregate |
| Deductible | $1,000 |
| Coverage Type | Must be occurrence-based (not claims-made) |
| Cancellation Notice | 30 days |
| Lender Designation | Must list lender as Additional Insured |
Business Interruption Insurance
This is especially important for investors who plan to lease out units during or after rehab completion.
| Requirement | Details |
|---|---|
| Mandatory | YES |
| AM Best Rating | A- VIII or higher |
| Policy Term | 12 months |
| Coverage Limits | - $1,000,000 per occurrence - $2,000,000 total aggregate |
| Deductible | $1,000 |
| Coverage Type | Must be occurrence-based (not claims-made) |
| Cancellation Notice | 30 days |
| Lender Designation | Must list lender as Additional Insured |
Flood Insurance
If your Virginia property lies in a FEMA-designated flood zone, you’ll likely need a dedicated flood insurance policy.
| Requirement | Details |
|---|---|
| Mandatory | Yes (if property is in flood zone) |
| AM Best Rating | A- VIII or higher |
| Policy Term | 12 months |
| Coverage Limit | The greater of $250,000 or your loan balance |
| Cancellation Notice | 30 days |
| Lender Designation | Lender listed as Mortgagee |
Additional Coverage Notes for Virginia Projects
Lenders require their mortgagee clause on your policy, such as:
| Requirements | Virginia Specific Fix and Flip Insurance Details |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condominiums (Condos) | - Blanket insurance may be accepted if it extends to the unit being flipped - HOA must carry “all-risk” policy that fully insures shared spaces, structural elements, and equipment at 100% replacement value |
| Planned Unit Developments (PUDs) | - Master policy must include the individual unit if a blanket form is used - HOA must maintain “all-risk” coverage for all communal assets at full insurable value |
| Instructions | To ensure a smooth closing and full insurance compliance for your Virginia-based fix and flip, follow these key steps: - Submit ACORD-formatted documentation for every insurance policy - Deliver policy binders, proof of premium payment, or invoices at least 24 hours prior to closing - Share finalized policy declarations no later than 60 days post-closing - If your property in Virginia becomes unoccupied, notify the carrier and obtain a vacancy permit for the full duration of non-occupancy |
Why Choose OfferMarket for Fix and Flip Insurance?
OfferMarket has earned the trust of investors and lenders across the Commonwealth of Virginia by making the real estate process smoother—from property acquisition and rehab funding to insurance management. With one platform, you eliminate the usual delays, overpricing, and inefficiencies that plague many projects.
What Sets OfferMarket Apart:
- All-in-one platform for insurance, financing, and deal management
- Hands-on support team specializing in real estate investing
- No more time wasted quoting manually—we shop carriers on your behalf
- Intelligent pairing with investor-friendly insurance providers
Frequently Asked Questions
Do I need coverage before closing on my flip?
Absolutely. Whether you’re using a loan or buying in cash, proof of insurance is required at closing. OfferMarket can deliver your COI (Certificate of Insurance) within just a few hours.
Can I get a policy if the Virginia property is already under renovation?
Yes, but you’ll need to be upfront about the current state of construction. Some insurers may ask for inspections or place limitations on certain coverage types once renovations are underway.
What if I sell the property earlier than expected?
Not a problem. You can cancel your policy at any time and receive a pro-rated refund for the unused portion of your premium.
Can I bundle multiple Virginia properties under a single policy?
Yes, you can consolidate with a portfolio policy to cut down on paperwork and reduce your average cost per property.
What if a tenant is living in the property during the rehab?
Some fix and flip insurance policies don’t support active occupancy. In this case, a hybrid or landlord policy will be required to maintain protection for both rental and renovation purposes.
How does OfferMarket Insurance work?
OfferMarket Insurance is a smart rate-shopping platform built specifically for real estate investors. Our team of specialists vets your application to ensure it meets lender criteria while securing the lowest possible premium from over 40+ top-rated carriers.
Can I work with my current insurance agent?
Yes, as long as your agent understands fix and flip insurance guidelines and has access to commercial insurance carriers. However, we frequently see delays and compliance issues when investors rely on personal lines agents unfamiliar with fix and flip requirements.
For faster results and policy quality, we recommend working with OfferMarket Insurance—especially if you’re also using OfferMarket Capital for your financing.
Can I pay my insurance premium through the HUD-1 or ALTA settlement?
Yes. Most lenders allow your insurance premium to be paid at closing via the settlement statement. If you opt to pay the agent directly, you’ll need to show a paid receipt before settlement.
Do I need to escrow my fix and flip insurance?
Most lenders don’t escrow for fix and flip policies. You’re responsible for ensuring the policy stays active. If your Virginia rehab project goes beyond 12 months, you’ll need to show proof of policy renewal to your lender. You’ll still receive a pro-rated refund upon cancellation.
What is an AM Best Rating?
AM Best is the gold standard for rating the financial strength of insurers. A rating of A- VIII or higher is typically required for fix and flip projects to ensure stability and claims reliability.
What is builder’s risk insurance?
Builder’s risk coverage protects a property and its construction materials throughout the renovation phase. Covered risks typically include fire, windstorm, theft, lightning, vandalism, and falling debris.
Builder’s risk typically applies to:
- Structures under active construction
- Materials and equipment stored on-site or nearby
- Foundation and structural elements being added or altered
Your policy ends once:
- The property is sold
- 90 days have passed since completion
- The home is occupied or used for its intended purpose
- The insured interest is relinquished
- Renovation is abandoned with no plan to resume
Protect and Grow Your Portfolio with OfferMarket
In Virginia’s competitive real estate landscape, having robust fix and flip insurance isn’t just smart—it’s essential. With tight margins and volatile timelines, seasoned investors know that managing risk is just as critical as maximizing returns.
Whether you’re flipping one Cape Cod home in Virginia Beach or managing a dozen townhome rehabs across Richmond and Northern Virginia, OfferMarket provides the scale, speed, and savings you need.
Protect your money. Protect your progress. Protect your future.
OfferMarket is a vertically integrated real estate platform designed to empower 1–4 unit residential investors throughout Virginia and beyond. Our mission is to help you build wealth, faster and smarter.
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