How Much Does Fix and Flip Insurance Cost?

Nate Jones, CPCU, ARM, CLCS, AU
1 day ago
2 min read

If you’re buying a property to rehab and resell, one of the first questions you’ll likely ask is: How much does fix and flip insurance cost? While exact pricing varies by project, location, and coverage, understanding the factors that influence premiums helps you budget accurately and choose the right policy for your investment.

What Affects the Cost of Fix and Flip Insurance?

1. Property Value and Rehab Scope

Higher property values and extensive renovations generally lead to higher premiums. The more valuable the structure and the larger the rehab project, the more coverage you’ll need.

2. Project Type: Residential vs. Multifamily

Fix and flip insurance for a single-family rehab usually costs less than coverage for multifamily buildings or larger commercial conversions due to greater exposure and risk.

3. Length of Project

Most fix and flip investors hold properties for a short period (e.g., 3–12 months). However, longer projects increase exposure time, which typically increases insurance cost.

4. Coverage Limits and Deductibles

Higher limits and lower deductibles mean stronger protection but higher premiums. Typical policies include:

Property coverage
Liability coverage
Optional loss of rental income (if applicable)
Optional endorsements for flood, soft costs, etc.

5. Location and Local Risks

Areas prone to storms, hail, or high crime often carry higher insurance costs. Separate coverage may be needed for flood or earthquake risks not included in standard fix and flip insurance policies.

Typical Cost Ranges for Fix and Flip Insurance

While actual premiums vary, here are approximate annual ranges based on property type and project size:

Project Type	Estimated Annual Premium*
Single-Family Fix and Flip	$800 – $3,000+
Multifamily (2–4 units)	$2,000 – $8,000+
Larger Rehab/Commercial	$5,000 – $20,000+

These are general estimates; the actual cost depends on property value, coverage limits, project timeline, and risk factors.

How to Estimate Your Expected Insurance Costs

To project how much your fix and flip insurance might cost:

Calculate replacement value — not purchase price or market value.
Determine coverage limits based on your rehab budget and exposure.
Evaluate liability risk, especially if you’ll have workers or heavy equipment on site.
Add endorsements as needed (e.g., flood, sewer backup, soft costs).

Ways to Reduce Fix and Flip Insurance Costs

Here are strategies savvy investors use to keep premiums reasonable:

Choose appropriate deductibles — higher deductibles can reduce premiums.
Bundle coverages if you carry other investment property policies.
Improve site security — alarms and cameras may reduce risk.
Shorten project timelines where feasible.

Note that reducing premiums should never compromise necessary coverage.

Get a Fix and Flip Insurance Quote From Wexford Insurance

At Wexford Insurance, we help fix and flip investors nationwide find the right insurance coverage that fits their budget and project needs. We work with carriers experienced in rehab and construction-related risks, including: