The insurance market has taken note of the flipping activity, says Dena Martin, vice president of commercial lines for Los Angeles based Anderson & Murison, an independent property/casualty wholesale firm.
has seen quite a few construction markets interested in property renovation and flips.
â€œRenovation and property flipping was an extremely popular trend prior to the financial crisis,â€� she
said. â€œAfter the crisis, we saw policies that were strictly for vacant properties and no renovation.
A good majority of Anderson & Murisonâ€™s carriers seem to have an interest in property renovators right now, Martin
says, but the type of renovation is a factor.
The first thing carriers want to know is what phase of renovation the project is in, she
says. â€œThatâ€™s first and foremost.
Some projects will be out if the project has already started.â€�
The length of vacancy of a property is also important. â€œSomething that is more recently vacant is less of a risk than something thatâ€™s been vacant for years,â€� she
Theyâ€™d also like to know whether the contractor is the owner-builder or if everything is subcontracted out to spread the risk. â€œContractors can be a little more challenging for general liability for owner-builder because the carrier wants to spread that risk out a little bit.â€� Pricing is higher if the risk is not spread out, she