Do You Know The Insurance Risks of Flipping Houses?
There Are Several Insurance Risks of Flipping Houses You Should Be Aware Of
If you are a real estate investor, then you need to know the Insurance Risks of Flipping Houses.
What Are Insurance Risks of Flipping Houses?
There are three risks in particular that you should be aware of:
Have you looked up the claims history of the property? It is important that you do because there are a plethora of potential liabilities that you could have on your hands. For example, the property could have suffered through a previous flood and may potentially have molding issues later on down the line. Or, the property could have sustained fire damage, which then is cause for future inhalation issues.
Any house you flip could have issues you may not be aware of, from the plumbing to the exterior elements, like trees.
Suppose that you are flipping a house that becomes a multifamily home, such as a duplex. If there were no security cameras, and your tenant gets injured, then you may be at risk. Lawsuits can spring up from a number of different liabilities, and it is important that you understand what you are getting into.
Not Enough Coverage
Do you know the insurance rates in Harris county? In addition, do you know all liability insurance types that might exist? If you do not have enough coverage, you may be liable!
Why Do You Need To Know The Insurance Risks of Flipping Houses
So that you are better protected! If you do not have enough coverage, it is very possible that you will be paying out of pocket.
To avoid the headache, you need the right insurance!