House Flipper Insurance in California

Types of Insurance for California House Flippers

The type of coverage you need will depend on the specific risks associated with your house flipping business. Common types of insurance for California house flippers include:

Dwelling Policy

A dwelling policy is a form of property insurance that provides coverage for a particular building and the structures attached to it, like a garage or deck. However, it excludes coverage for any contents inside the building, the owner's personal liability, or any structures that are not attached to the building.

House flippers in California often use dwelling policies when they purchase, renovate, and sell properties in a short time frame. These policies offer coverage for risks such as fire, vandalism, theft, and weather damage that house flippers are exposed to. In such cases, dwelling policies are a more flexible and cost-effective option as compared to homeowners insurance, which may not be available or applicable to properties that are vacant or under construction.

Builder's Risk Insurance

A builder’s risk policy provides coverage for structures that are under construction, renovation, or undergoing maintenance. These policies can be used to cover single-family homes that are being remodeled or entire condominium complexes.

Builder’s risk policies offer coverage for risks such as fire, theft, vandalism, wind and hail damage, and water damage due to plumbing malfunctions. These policies also provide coverage for building materials, fixtures, furniture, and other items that are part of the construction project.

General Liability Insurance

House flippers face risks of being sued for injuries that occur on the property or claims from unsatisfied customers. A general liability policy offers protection against such risks, providing coverage for medical expenses and damages if a third-party files a lawsuit. It also covers advertising injury, contractual liability, and product liability.

Umbrella Insurance

Umbrella insurance is a type of insurance that provides extra coverage beyond your primary liability policy. It can help you pay for legal fees, medical bills, and property damage if you are sued by someone who gets injured on your property or claims that you caused them harm.

A General Liability Umbrella policy is especially useful for house flippers who work with multiple contractors, investors, and entities on their projects. These parties may not have adequate insurance or may try to hold you responsible for any mishaps that occur during the renovation process. A General Liability Umbrella policy can shield you from these risks and give you peace of mind.

A General Liability Umbrella policy is also quite affordable. For a few hundred dollars, you can get $1 million worth of coverage or more, depending on your needs and preferences. The cost of your policy will depend on factors such as your location, the value of your property, and the level and type of coverage you choose.

Worker's Compensation Insurance

The state of California requires employers to have Worker's Compensation insurance if they employ at least one employee. This insurance provides coverage for medical expenses and lost wages in the event of a job-related injury or illness.

House flippers often hire subcontractors, plumbers, electricians, and other professionals to help them with their projects. If any of these workers get injured while working on your property, they will be covered by Worker's Compensation insurance. This policy is important to have as it protects you from being personally liable for any damages resulting from a worker's injury.

Commercial Auto Insurance

Whether you are transporting materials to the job site or driving around town in search of potential properties, a commercial auto insurance policy is essential. This type of insurance provides protection for any vehicles used for business purposes and covers damages resulting from accidents, theft, fire, and other risks. It also covers medical expenses if your employees get injured while driving your vehicles.

California's minimum requirements for commercial auto insurance include bodily injury liability of $15,000 per person/$30,000 per accident and property damage liability of $5,000. However, you may want to purchase additional coverage in order to protect your business assets from potential losses.