For the Pros--Help Please

[JCK818]

I have a client who flips homes. At a give time he has 25-30 homes he is working on. Currently his agent is selling him regular dp3 policies. He is not happy with him and wants to change to me (because i'm cool like that). Now, these dwellings are under construction 99% of the time, so regular dwelling policies will not work (i'm thinking). What better product would you guys suggest. I'm guessing there has got to be a better way, then to get him 30 separate policies. By the way, he keeps these dwelling on an average of 90-120 days.

 

[NCAgent]

I have a client who flips homes. At a give time he has 25-30 homes he is working on. Currently his agent is selling him regular dp3 policies. He is not happy with him and wants to change to me (because i'm cool like that). Now, these dwellings are under construction 99% of the time, so regular dwelling policies will not work (i'm thinking). What better product would you guys suggest. I'm guessing there has got to be a better way, then to get him 30 separate policies. By the way, he keeps these dwelling on an average of 90-120 days.

Would a builders risk work here? I think Zurich offers smaller-duration policies and would be good for houses under construction. Dunno if they can list all 30 of them at a time though.

 

[djs]

To be honest, there is virtually no money in this type of deal for you. It also makes your retention rates a bit sucky....

I do know there are some carriers that will offer blanket coverage for this type of activity. I haven't kept up with it though and delete the emails as I get them. Strangely enough, there is enough of a demand for this that somebody somewhere put together a package to deal with exactly this type of thing.

 

[JCK818]

Yeah I found something through Burns & Wilcox, just wondering if there is anything else out there.

 

[CaptiveGuy]

zurich- Builders Risk Insurance

They pay 10-15% and they offer 6, 9, and 12 month policies very easy to quote and issue a policy. Five minutes and you are paid.

 

[gambrinus]

The ONLY way to make any $$ with this is to charge a brokers fee upfront. Make it reasonable to both you and the client, let him know that you don't work for free, but you'd like to work with him. If he's doing that many properties, you may be able to do o.k. with this.

RW

 

[Bertolinoins]

I am pretty sure Scottsdale has a program for flippers but this is typically the type of account I try to avoid. I love RE investors that deal with single family homes and small apartments but I hate flippers... too much work and too much exposure for too little money.

 

[Guest]

Amercian Modern has a fabulous policy for this,

 

[Crys]

TAPCO Underwriters writes 3-6-9 and 12 month policies. Great fast service.

 

[moneymaker1]

I agree with the person that said you are going to have to charge an upfront fee. Besides, that is A LOT of work for you and your staff so don't be afraid to charge him.