Standard homeowners insurance stops the moment you close on a property you plan to flip. The home is vacant, under renovation, or both, and personal lines policies don’t cover any of that. House flipping insurance covers the structure, on-site materials, and your liability from the day you take title to the day your buyer closes.
House flipping insurance covers real estate investors from the day they take title on a property to the day the buyer closes. It protects the structure, on-site materials, and liability during vacancy, renovation, and active construction. A standard homeowners policy covers none of that.
The risk profile of a flip is nothing like a primary residence. Subcontractors are on site. The structure may be open. Materials sit staged in unoccupied rooms for weeks. The property can be vacant before renovation starts and vacant again after it ends, and both of those windows are unprotected under a personal lines policy.
Most fix-and-flip policies stack a builder’s risk policy for active construction with vacant property or dwelling coverage for the periods before and after work begins. Here’s how the coverage types break down:
Coverage should reflect what it actually costs to repair or rebuild the property today. Not the purchase price. The purchase price on a distressed home is often well below what it would cost to rebuild at current labor and material rates, and construction costs have stayed elevated into 2026. Underinsuring to save on premium is a real mistake. You absorb the gap at claim time.
Set your policy limit to what rebuilding costs now. On older distressed homes bought below market, that number is usually higher than what you paid.
A cosmetic flip (paint, flooring, fixtures) is a different risk class than a structural renovation. Moving walls, replacing roofing, redoing electrical or plumbing: those require coverage sized for the actual work, not just the square footage.
Gives protection for specific dangers, like fire, lightning, and windstorms. Works best for smaller projects or minor home upgrades with fewer risks.
Gives broader protection by covering all dangers except those the policy leaves out. Fits well for bigger or more complex flip projects where unexpected events are more likely to happen.
House flipping insurance premiums are calculated based on several project-specific factors. Understanding what drives cost helps you structure coverage without overpaying.
Higher value means higher coverage limits and higher premiums. A $500,000 property costs more to insure than a $200,000 one.
Paint and flooring are low risk. Foundation work, roof replacement, electrical and plumbing overhauls are not. Carriers price what’s being done, not just what the property is worth.
Hurricane zones, flood plains, high-wildfire areas, and coastal markets all carry elevated premiums. High-risk locations can run 10–20% above standard rates, sometimes more. ATTOM’s Q4 2025 data shows Texas, Georgia, and Ohio as top flipping markets. All three have meaningful weather exposure that affects pricing.
Fix-and-flip policies are typically written in 3-, 6-, or 12-month terms. The average flip in recent years took about 166 days to complete, so a 6-month policy usually fits. Longer projects need a 12-month policy or a mid-project renewal. Properties that sit vacant longer also cost more to insure, regardless of term.
Premiums depend on property value, renovation scope, location, and how long you need coverage. Most fix-and-flip projects fall within these ranges:
A $500,000 property
A $200,000 property
Minor cosmetic updates
Big structural changes
A policy in a high-risk area might go up
Depending on project risk
Depending on project risk
A combined vacant/builder’s risk policy typically runs 0.5%–1% of the property’s value per month. On a $200,000 property, that’s $100–$200/month. A $1M general liability umbrella usually adds a few hundred dollars per year to that.
To get an accurate quote, have four things ready: purchase price, estimated renovation cost, property address, and expected project timeline.
House flipping has its risks, but these tips can help protect your investment:
Use Builder’s Risk Insurance when you renovate and Vacant Home Insurance for empty properties.
Put up cameras, lights, and locks to stop theft and damage.
Team up with licensed pros to avoid legal issues and get good work.
Change policies when project values or scopes shift.
Save money for delays and add Special Form Coverage to handle unexpected events.
A common mistake among first-time flippers is waiting until renovation begins to get insurance. Coverage should be in place on the day you take title. A vacant, uninsured property between closing and renovation start is a full exposure gap.
We work with investors on fix-and-flip projects regularly, not as an occasional side request. Our carriers understand the coverage structure a flip actually requires, and most projects can be quoted and bound the same day. If a flip turns into a hold, we can also help you get into a landlord policy without starting over.
Licensed professionals who write builder’s risk and fix-and-flip policies as a core part of their book, not as a one-off.
Same-day binding is available for most projects. If you need coverage in place before closing, we can do that.
A-rated companies with real claims history in this coverage class. We compare across multiple providers, so you’re not limited to one carrier’s pricing.
We write policies across the U.S., including in Texas, Georgia, and Ohio, which are among the highest-volume flipping markets in the country right now.
We shop multiple carriers. We’ll also tell you where you’re over- or under-insured before you bind, not after a claim.
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It’s a package of coverage types for real estate investors who buy, renovate, and resell properties. A typical fix-and-flip policy includes builder’s risk during active construction, vacant property or dwelling coverage during idle periods, and general liability throughout the project. Standard homeowners insurance doesn’t cover vacant or actively renovated properties.
Yes, if you’re doing any real renovation work. Builder’s risk protects the structure and any materials, fixtures, and equipment on site that haven’t been installed yet. Read the exclusions before you bind. Not everything is covered. A dwelling policy alone won’t cover what you’ve invested in the rehab if a fire or storm hits mid-project.
Dwelling insurance covers the structure against fire, storms, and vandalism. Vacant home insurance is written specifically for unoccupied properties and covers risks a standard dwelling policy tends to exclude, like extended water damage and vandalism exposure. The threshold varies by carrier, but if your flip will sit empty for more than 30–60 days, vacant home coverage is usually the right call. If you’re planning to rent rather than sell, look at landlord insurance instead.
Most fix-and-flip policies run $1,000–$5,000 per year. The rule of thumb is 0.5%–1% of the property value per month for combined vacant/builder’s risk coverage, plus a few hundred dollars for general liability. Have your property address, purchase price, estimated rehab cost, and timeline ready when you request a quote.
Our agents specialize in builder’s risk and fix-and-flip coverage. We’ll get you the right policy fast, and bundling typically saves 10–15% off your total premium.
