Builders Risk and Solving for ACV

DJAJ

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I have a client who flips properties. He just bought 2 properties in DC. He paid about 750k for each property and expects to put another $300k in renovations. Both properties are built in the very early 1900's. The problem is when I do a builders risk quote they will only allow ACV because of the properties' ages. The replacement cost on them they are around $300k, DC is very over priced but a hot market. I have no idea what value to use for the ACV. What ever it is going to be its a lot less then the $1MM he's putting into the properties. This concerns me.
 
In this case if he has BOP policy, it will cover new appeared property up to certain limit, which is pretty high. Try this path plus builders risk.
 
I have a client who flips properties. He just bought 2 properties in DC. He paid about 750k for each property and expects to put another $300k in renovations. Both properties are built in the very early 1900's. The problem is when I do a builders risk quote they will only allow ACV because of the properties' ages. The replacement cost on them they are around $300k, DC is very over priced but a hot market. I have no idea what value to use for the ACV. What ever it is going to be its a lot less then the $1MM he's putting into the properties. This concerns me.

Did you try US Assure?
 
Ty vacant express. No one is going to give you replacement cost on a flip. Vacant express has been the cheapest we've dealt with. They will allow you to use ACV plus add the additional cost of the flip in there.

ACV calculation is sometimes used as 60% of RC however if you have an MSB with any of your carriers it should provide you with the figure you are looking for.
 
I have a client who flips properties. He just bought 2 properties in DC. He paid about 750k for each property and expects to put another $300k in renovations. Both properties are built in the very early 1900's. The problem is when I do a builders risk quote they will only allow ACV because of the properties' ages. The replacement cost on them they are around $300k, DC is very over priced but a hot market. I have no idea what value to use for the ACV. What ever it is going to be its a lot less then the $1MM he's putting into the properties. This concerns me.

If he has a decent size portfolio, then I know if a great program that will give you RC on flips. No min premium and the program is designed for these types of clients.
 
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