How to Choose the Best Fix and Flip Insurance Policy for Your Project
- Jan 12
- 3 min read
Not all insurance policies are created equal—especially when it comes to fix and flip insurance. Choosing the wrong policy can leave your rehab project exposed to fire, theft, liability claims, or costly delays.
If you’re buying a property to rehab and resell, this guide will help you choose the best fix and flip insurance policy for your specific project.
1. Start With the Right Type of Policy
The first step is making sure you’re not relying on the wrong insurance altogether.
Avoid using:
Standard homeowners insurance
Landlord or rental property insurance
These policies often exclude vacant properties, renovations, and construction-related risks. Fix and flip insurance is specifically designed to protect properties under renovation and resale.
2. Choose Proper Property Coverage Limits
Your fix and flip insurance policy should be based on the replacement cost of the completed structure, not the purchase price.
Consider:
Full rebuild cost after renovations
Cost of materials stored onsite or in transit
Exposure during different renovation phases
Underinsuring the property can result in partial claim payments or coinsurance penalties after a loss.
3. Don’t Overlook Liability Coverage
Liability coverage is one of the most critical components of a fix and flip insurance policy.
Make sure your policy covers:
Injuries to contractors or subcontractors
Accidents involving visitors or inspectors
Legal defense costs if you’re sued
Vacant and active construction sites increase the likelihood of liability claims.
4. Evaluate Coverage for Theft and Vandalism
Fix and flip properties are common targets for theft, especially when vacant.
Look for coverage that includes:
Stolen appliances, lumber, and wiring
Tools and materials onsite
Vandalism or malicious damage
The National Insurance Crime Bureau reports that construction theft remains a major issue nationwide.
5. Add the Right Endorsements for Your Project
The “best” fix and flip insurance policy often includes endorsements tailored to your risk profile.
Common endorsements include:
Flood insurance (separate or endorsed, depending on location)
Soft costs coverage for delays
Debris removal
Extended coverage for off-site materials
Skipping endorsements can create coverage gaps that only become obvious after a loss.
6. Match the Policy Term to Your Timeline
Fix and flip projects are time-sensitive. Choose a policy term that matches your rehab and resale plan, typically:
3 months
6 months
9–12 months
If your project runs longer than expected, your policy may need to be extended before it expires.
7. Make Sure the Policy Meets Lender Requirements
If you’re using a hard money or private lender, insurance requirements are often strict.
Your policy may need to:
List the lender as loss payee
Meet minimum coverage limits
Be active before closing
Failing to meet lender requirements can delay funding or closing.
How Wexford Insurance Helps Investors Choose the Right Policy
At Wexford Insurance, we specialize in fix and flip insurance for property owners and investors nationwide. We help you:
Choose the correct policy structure
Set accurate coverage limits
Add the right endorsements for your project
Secure coverage quickly so you can close on time
👉 Request a fix and flip insurance quote from Wexford Insurance today and get expert guidance tailored to your rehab project.
