Property Insurance after purchase?


#1

We are having a hard time finding property insurance in a timely manner for homes we purchase at auction. It seems no one want to give a short term insurance policy for an investor/flipper. Does anyone have a suggestion for an insurance company/agent that will insure Southern California homes at reasonable prices? It also seems the turn around time is not instantaneous like a normal home. Waiting a few days is nerve wracking on a house you just paid cash for!


#2

I am wondering the same. If I understand correctly, the winning bidder receives a trustee’s deed upon sale, with the actual trust deed being sent by the trustee within +/-2 weeks of winning at auction. In this time, how do you insure a property that you have not recorded a trustee’s deed on? Insurance quotes I have received for flipping a property are much higher than if owner occupied, due to the increased risk to Insurer, but even if I’m willing to pay the higher premium, will I run into problems insuring the property for that 2 week period before recordation?


#3

As long as you record the deed within 15 days, you legally had ownership as of 8am the day of sale. I’ve never had an insurer ask for proof of ownership during that time, so it should be a non-issue so long as you get your deed recorded on time.


#4

I recommend talking to a commercial insurance agent about a blanket builders risk policy. With these you simply provide a list of properties each month.
Now, that said, you may not find these policies to be “reasonable”. They can be 2-4 times more expensive than homeowners policies.


#5

Wow, I am pretty lucky to find my insurance agent who is very responsive and knowledgeable about insuring the properties bought at trustee sales. Last time I bought a property from the auction in the morning, by end of the day my agent has the policy ready and effective on the same day. Yes, the premium is many times more expensive than the regular H.O. insurance, but, since I am doing a flip so I am more concerned about my property has a preper type of insurance than paying a couple of months premium. It is definitely worthy.
BTW. one thing I need to do for the agent to get the process go thru quickly is to take a few photos for her as the evidence of the conditions.

Here is her phone number : 925-474-3413. Hope this helps.