Important information about vacant homes and insurance its something you must absolutly be aware of and know in the US.

Insurance:

One needs to read the small print and get confirmation in writing from the insurance company as to how many days the house can be vacant, vis a vi if there is a brake in fire or vandilism..

Some policies are as little as 30 days vacant most are 60.

You can buy additional insurance that protects against these cases of vandilism that are more comman than we would all like to think.

I have had many a client especially in Detroit call and get wiped out because their house had been vacant over 60 days and its been burnt down or trashed and there is no insurance… And especially for someone in OZ to fight insurance is a no win battle.

Get your coverages explained to you and confirmed in writing do not take any turn key PM or anyone else for that matters word for it… Get it in writing from Insurance company to protect yourself.

When the thread on TRR was talking about 3 month reno's and 2 month renos… these folks are at risk of not having proper insurance.

There is a policy called builders risk… these are what we use on new construction and can be used on these Reno's they specially protect vacant homes in the building or RENO stages.

There are going to be some upset investors from what I am seeing here that think they are getting insurance company checks only to get denied because the homes have been vacant too long.

Its just like a property I had in Canada,,, if you left for the winter you had to hire a service to come once a week to check the water pipes, insurance would not pay for broken pipes if you did not have this service engaged.

At TWH we are hyper vigilant to this … In the rare case it takes us longer than sixty days to buy reno and tenant we know at 55 days we add the vacant home policy rider to our coverage then cancel once we have a tenant… Does not happen often but we get close… As we are very very picky who we put in our homes, we are not under pressure from Owners for cash flow like normal Turn KEY or PM's are…

With our next 100 homes we will drop all but liablity insurance as well we will self insure.. at that point what I am paying in premiums Monthly I could have a home a month burn down and still be ahead cash flow wise…

And on these super cheap houses in the Hood I would not even insure them except for liablity… Or I would be looking for a jewish fire…