You can’t close without insurance. And if you’re flipping without the right kind of coverage, you’re putting your entire project—and your capital—at risk.
Traditional homeowner’s insurance doesn’t apply to fix & flip deals. The moment a property sits vacant or enters construction, that policy becomes useless. Investors need something purpose-built for the risks that come with short-term real estate.
Understanding Coverage
There are two main types of coverage that work: builder’s risk and vacant dwelling. If your crew is on-site, materials are being delivered, and the renovation is underway, you need builder’s risk. It covers theft, fire, vandalism, and damage during the rehab. If the property is empty but not under active construction—like when it’s waiting on permits or listed for sale—you’ll need vacant dwelling insurance.
We require coverage before funding. That means your policy needs to be active on or before the close date, structured for the full replacement cost of the property, and correctly list Crebrid as the loss payee. If any of that’s missing, the wire doesn’t go out.
Some investors choose to add general liability or premises liability coverage, especially when hiring contractors or leaving the property empty for long stretches. It’s not required, but it’s smart. Accidents happen, and lawsuits move fast.
The most common delay we see in funding is an insurance mistake—wrong policy type, last-minute binding, or underinsured coverage. It’s avoidable. Get the right policy early and get your deal moving.
If you don’t have a provider, we work with insurance partners who understand these deals and move fast. They know exactly what our underwriting team needs to see and how quickly it needs to be delivered.
You’re already taking on risk. Insurance is the part that keeps it controlled. Handle it up front, and you’ll keep your deal on track.
