What Insurance Do I Need to Flip a House?

Flipping houses can be a lucrative venture, but it comes with its fair share of risks. From unexpected structural issues to market fluctuations, house flippers face a myriad of challenges. One way to protect your investment and mitigate potential losses is through the right insurance coverage. In this blog post, we’ll explore what insurance you need to flip a house and to ensure a smoother and more secure journey in the world of real estate investment.

What Insurance Do I Need to Flip a House? Hertvik Insurance Group Medina OH

Property Insurance: Shielding Your Investment

The cornerstone of any house flipping venture is property insurance. This coverage protects your investment property from a range of perils, including fire, vandalism, and natural disasters. As you take possession of a property, securing a comprehensive property insurance policy is paramount to safeguarding your financial interests.

Builder’s Risk Insurance: Tailored Protection During Renovation

House flipping often involves substantial renovations, exposing the property to additional risks during the construction phase. Builder’s risk insurance provides coverage for damages to the property under renovation, including theft, fire, and other unforeseen events. This specialized coverage is crucial for flippers, offering protection for both the existing structure and new construction.

General Liability Insurance: Safeguarding Against Lawsuits

Flipping houses involves numerous contractors, subcontractors, and other parties working on the project. General liability insurance protects you from potential lawsuits and claims arising from bodily injury or property damage on the construction site. Accidents can happen, and having this coverage in place can shield you from legal and financial repercussions.

Umbrella Insurance: Adding an Extra Layer of Protection

While property and liability insurance provides essential coverage, an umbrella insurance policy can offer an additional layer of protection. Umbrella insurance kicks in when your primary coverage limits are exceeded, providing extra financial support and protecting your personal assets in the event of a substantial claim.

Title Insurance: Ensuring a Clean Ownership Transfer

Title issues can surface during the house flipping process, potentially leading to legal disputes and financial losses. Title insurance protects against defects in the property’s title, ensuring a smooth transfer of ownership. It provides coverage for issues such as undisclosed liens, boundary disputes, and other title-related complications.

Business Interruption Insurance: Mitigating Income Loss

Unforeseen events such as natural disasters or other covered perils can disrupt your house-flipping project, resulting in income loss. Business interruption insurance compensates for lost income during the period when the property is uninhabitable due to covered damages. This coverage can be crucial in maintaining financial stability during unexpected setbacks.


Flipping houses is an exciting yet challenging venture that requires careful planning and risk management. Securing the right insurance coverage is a crucial aspect of mitigating potential risks and ensuring the success of your investment. From protecting the property during renovations to shielding against legal claims, a well-rounded insurance portfolio can make all the difference in the dynamic world of house flipping. As you embark on your next project, consider these essential insurance options to build a robust shield around your investment and pave the way for a profitable and secure venture.