When you buy a home for yourself and your family, one of the first things you’ll do before moving in is make sure that your new dwelling is properly insured. A home is a major investment, and if it were to be hit by theft, vandalism, fire, or a storm, the damages could significantly hurt your bottom line if you’re uninsured. Most people would agree that home insurance is always a good idea. So, if you would insure your finished home, why wouldn’t you also insure it while it was under construction?
Builder’s Risk Insurance is a type of insurance that not very many people are familiar with outside of the construction world. If you want to flip houses, though, it’s a type of insurance that you should take the time to learn all about. At ZINC Financial we require that everyone who takes out rehab loans with us have adequate Builder’s Risk insurance. This type of insurance protects you, your loan, and your property during the various phases of construction when it may be particularly prone to dangers like theft, vandalism, and damage from the elements.
Depending upon your specific policy, Builder’s Risk insurance can protect your investment property while it is under construction from theft of construction equipment; damage from storms, lightning, or fire; vandalism; damage from defective workmanship; damage to scaffolding, fencing, and other temporary structures; and much more. Builder’s Risk insurance usually covers contractors, the owner of the property (you), and anyone lending on the property (us). An added benefit of this type of insurance is that if there is significant damage to your property while it is under construction, you will not only recoup lost labor and equipment costs but also lost future profits.
Requiring Builder’s Risk insurance is just one way that the team at ZINC helps you protect your investment property so that you can achieve the highest ROI. As your private money lender, ZINC is always looking for ways to help clients minimize their costs, make wise decisions, and cover all of their bases. Contact us today to learn more about what sets ZINC apart from other lenders. We can also answer any questions you may have about Builder’s Risk insurance, our available loan rates, and more.