What insurance do you need to flip a house?

Typically a vacant/unoccupied dwelling policy plus builder's risk (course-of-construction) coverage and general liability. Many insurers offer a combined investor or fix-and-flip policy, sometimes month-to-month to match the project timeline.

What is builder's risk insurance?

Builder's risk, also called course-of-construction insurance, covers a building and its materials against damage during renovation or construction — fire, weather, theft, and vandalism while the work is underway.

Does homeowner's insurance cover a house flip?

Generally no. Homeowner's policies assume the property is occupied, so they typically don't cover a vacant home under renovation and can be voided if occupancy is misrepresented. Flippers use vacant-property and builder's risk coverage instead.

How much does house flipping insurance cost?

It varies with the property's value, location, condition, rehab scope, and policy length, plus your liability limits and claims history. Because flips are short-term, many investors use monthly or term policies that match the project rather than an annual one.

Foundations

House Flipping Insurance: What Coverage You Actually Need (2026)

A homeowner's policy won't cover a vacant rehab. Here's the coverage that actually does.

June 17, 2026 · 6 min read

Quick answer

House flipping insurance usually combines a vacant/unoccupied dwelling policy with builder's risk (course-of-construction) coverage and general liability. A standard homeowner's policy won't cover a vacant home under renovation and can be voided. Builder's risk protects the structure and materials during the rehab; liability covers injuries that happen on the job site.

Why a homeowner's policy won't work

Standard homeowner's insurance assumes the property is occupied. A flip is vacant and under construction — a higher-risk situation insurers price and underwrite differently. Relying on a homeowner's policy (or the seller's old one) can leave you uncovered for a fire, theft, or liability claim, and a misrepresented occupancy can void the policy entirely. Flippers carry purpose-built coverage instead.

Coverage types flippers need

Coverage	What it protects
Vacant / unoccupied dwelling	The empty structure against fire, weather, vandalism
Builder's risk (course of construction)	The building and materials during the renovation
General liability	Injuries to others on the job site and related claims
Theft / materials	Tools and materials stolen from the site (often an add-on)

Many insurers bundle these into an investor or 'fix-and-flip' policy, sometimes on a short-term or monthly basis that matches a flip's timeline.

What affects the cost

Property value, location, and condition.
Scope of the rehab — a full gut costs more to cover than cosmetic work.
Expected project length (policies often run 3, 6, or 12 months).
Your claims history and whether liability limits are raised.

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Frequently asked questions

What insurance do you need to flip a house?: Typically a vacant/unoccupied dwelling policy plus builder's risk (course-of-construction) coverage and general liability. Many insurers offer a combined investor or fix-and-flip policy, sometimes month-to-month to match the project timeline.
What is builder's risk insurance?: Builder's risk, also called course-of-construction insurance, covers a building and its materials against damage during renovation or construction — fire, weather, theft, and vandalism while the work is underway.
Does homeowner's insurance cover a house flip?: Generally no. Homeowner's policies assume the property is occupied, so they typically don't cover a vacant home under renovation and can be voided if occupancy is misrepresented. Flippers use vacant-property and builder's risk coverage instead.
How much does house flipping insurance cost?: It varies with the property's value, location, condition, rehab scope, and policy length, plus your liability limits and claims history. Because flips are short-term, many investors use monthly or term policies that match the project rather than an annual one.