Learn More With Gila Insurance Group LLC

With the rise of the housing market in the last few years, you may have considered investing in the real estate market by flipping houses. If you’re thinking about doing this, it’s always important to have insurance to make sure that your investment is cared for and protected while it is under your ownership. Learn the answers to some of the frequently asked questions for flipping houses with the help of Gila Insurance Group LLC. Contact us today to get your own house flipping insurance!

---

Why Is House Flipping Insurance More Expensive?

If you’ve looked into flipping houses, you may have noticed that the insurance policies are generally more expensive than standard homeowners insurance. The reason that it’s more expensive is because there is greater risk in the flipping. The house is left vacant, so theft, accidents, injuries, and other hazards are more prevalent. Whenever there is greater risk, insurance policies cost more.

What Is The 70% Rule?

The 70% rule helps home flippers determine the maximum price they should pay for an investment property. Basically, they should spend no more than 70% of the home’s after-repair value minus the costs of renovating the property. This is to ensure that you will be able to not only cover your expenses, but also make a profit once you are finished with the flip.

Should I Buy Title Insurance On A Flip?

Yes! You should absolutely get title insurance for any property that you own. Title insurance is in place to protect lenders and buyers from financial loss due to deficits in a title to a property. Often this will help to protect against claims for back taxes, liens, and conflicting wills.

Do I Need Special Insurance If I’m Renovating But Not Living In The House?

This all depends on the project that you are working on. In some cases, you may need special insurance for your property, but in others, you may be fine without it. In cases like this, it’s important to talk to your insurance agent to make sure that you are covered.

Get Started With Gila Insurance Group

The team at Gila Insurance Group LLC is here to ensure that you have all your insurance needs covered. Contact our team today to learn more about our house flip insurance and how we can help you.