Fix and Flip Insurance vs. Builder’s Risk: What’s the Difference?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
Investors purchasing properties to rehab and resell often face a critical question: “Do I need fix and flip insurance, builder’s risk insurance, or both?” Understanding the difference ensures your investment is protected from costly gaps.
At Wexford Insurance, we help property owners and rehab investors nationwide find the right coverage for their projects—whether single-family flips or multifamily renovations.
What Is Fix and Flip Insurance?
Fix and flip insurance is a specialized policy designed to protect properties purchased with the intent to rehab and resell. It typically covers:
Property damage during renovations, including fire, water, or storm damage
Liability coverage for injuries on the property
Theft or vandalism of construction materials or tools
Optional endorsements like flood, earthquake, or soft costs coverage
Fix and flip insurance is ideal for investors who are rehabbing a property quickly with the goal of resale. Unlike a standard homeowners or landlord policy, it covers vacant or under-construction properties.
For more context on construction-related coverage, see the Insurance Information Institute.
What Is Builder’s Risk Insurance?
Builder’s risk insurance is a form of temporary property insurance specifically for construction projects. Coverage typically includes:
The physical structure during construction or major renovations
Materials, supplies, and equipment onsite or in transit
Damage from fire, wind, theft, or vandalism
Optional endorsements for flood, earthquake, soft costs, and delays
Builder’s risk insurance is most common for ground-up construction or large-scale structural renovations where contractors and lenders require formal coverage.
Key Differences Between Fix and Flip Insurance and Builder’s Risk
Feature | Fix and Flip Insurance | Builder’s Risk Insurance |
Purpose | Protects investors rehabbing and reselling a property | Protects property under construction or major structural renovation |
Who Typically Carries It | Property owner/investor | Contractor, owner, or lender-mandated |
Property Coverage | Includes vacant or partially renovated structures | Includes structure, materials, and equipment onsite or in transit |
Duration | Usually short-term (3–12 months) | Temporary, tied to construction timeline |
Optional Endorsements | Flood, soft costs, extended liability | Flood, earthquake, soft costs, delay in completion |
When to Choose Each Policy
Fix and Flip Insurance: Ideal for standard rehabs, cosmetic updates, or properties that will be sold quickly. It ensures you’re covered as an investor, especially if the property is vacant.
Builder’s Risk Insurance: Necessary for major structural renovations, ground-up construction, or projects requiring lender-mandated coverage. Often combined with general liability carried by contractors.
Many investors combine both policies when working on large, high-value rehabs to ensure complete protection.
How Wexford Insurance Can Help
At Wexford Insurance, we specialize in fix and flip and builder’s risk insurance for investors nationwide. We help you:
Determine which coverage is necessary for your project
Add optional endorsements to protect against construction delays or natural disasters
Obtain a fast, customized quote to meet lender and project requirements
👉 Request a fix and flip insurance quote from Wexford Insurance today to protect your rehab investment from day one.
