Do I Need Fix and Flip Insurance Before Closing on a Property?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
For fix-and-flip investors, one of the most critical questions is: “Do I need fix and flip insurance before closing?” The answer can have serious financial implications for your rehab project.
Purchasing fix and flip insurance before closing ensures that your investment is protected from the moment you take ownership of the property. At Wexford Insurance, we help investors nationwide secure coverage that aligns with lender requirements and project timelines.
Why Timing Matters
Property ownership and insurance coverage are closely linked. Once you close on a property:
You assume responsibility for any damage, theft, or liability incidents
Lenders may require proof of insurance to release funds
Without coverage, you could face significant out-of-pocket costs if the property is damaged before renovation begins
Most lenders, especially hard money or private lenders, require fix and flip insurance before closing. This protects their financial interest in the property while you’re rehabbing it. Typical requirements include:
Property coverage for the structure
Liability coverage for contractors or visitors
Optional endorsements such as flood or soft costs
Failure to provide proof of coverage can delay your closing or jeopardize loan approval.
Risks of Waiting to Get Coverage
Waiting until after closing to purchase insurance exposes you to several risks:
Damage from fire, water, or vandalism may go uncovered
Theft of materials or tools left onsite
Accidents or injuries on the property before coverage is in place
Even a short gap in coverage can result in thousands of dollars in losses.
How Wexford Insurance Helps Investors Secure Coverage Before Closing
At Wexford Insurance, we specialize in fix and flip insurance for rehab investors nationwide. We help you:
Obtain coverage before closing to meet lender requirements
Protect the property, materials, and liability from day one
Add endorsements for flood, soft costs, or extended coverage
Quickly provide quotes so your project timeline stays on track
👉 Request a fix and flip insurance quote from Wexford Insurance today and secure your investment before you close.
