Columbus Ohio Real Estate Experts: What to Know About Rehab Coverage for Flippers

What to Know About Rehab Coverage for Flippers

Most consumers don't realize that the Ohio Fair Plan is available to them to assist consumers who have trouble obtaining coverage from a standard insurance company. Of course, it has guidelines that applicants must follow but it is an alternative to help consumers when standard insurance companies cannot.

After the riots in the 1960s and the catastrophic loss of properties in inner cities, reinsurers were unable to provide insurance coverage for these types of properties and in turn, loans for property renovations and improvements were no longer available. Mortgages became almost impossible to secure on inner-city properties so when a property sustained a loss, repairs could not be made. But the Federal Riot Reinsurance Act, which passed in 1968, assured that the Federal Government could provide reinsurance to companies for catastrophic loss by riots in particular states and this, in turn, established the FAIR Act. This act, which stands for Fair Access to Insurance Requirements requires a premium for reinsurance. These plans can provide essential insurance including fire, extended coverage, and in some cases, vandalism, for properties which were not eligible for coverage with standard insurance companies.

This FAIR Act is an excellent option for anyone looking to flip properties and purchase rehab coverage.

In 1977, the entire state of Ohio was designated as eligible for this insurance and since 1981, homeowners insurance has been available for 1 and/or 2 family owner-occupied properties. The availability of homeowners coverage provided the opportunity for theft and liability coverage for these properties and since 1987, a Crime Insurance Program has been available through the Fair Act for qualifying residential and commercial properties as well.

The Ohio Fair Plan provides coverage for structures and contents of real property located within the state of Ohio that meets underwriting criteria and has also been denied coverage by at least two insurance companies.

Coverage includes:

  • Dwelling Fire Coverage available for 1 – 4 family dwellings either tenant or owner-occupied.
  • Homeowners coverage for 1 – 2 family dwellings that are owner's primary residence.
  • Farm Fire coverage available for dwellings, tools, machinery, harvested crops, contents, farm buildings, and the livestock located on an active form.
  • Commercial Fire coverage available for commercial nonmanufacturing establishments or apartment buildings with 5 or more units.
  • Crime coverage for residential or commercial property as well as property contents.
  • Rehabilitation coverage for vacant properties undergoing significant renovations.

It's this rehabilitation coverage that is an excellent option for investors looking to purchase property for the sole purpose of rehabilitating the property and selling it.

Click here to obtain pricing or contact me if you have more questions about Columbus investment properties possibly eligible for this insurance. 614-323-4348

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Columbus Ohio real estate - Vision RealtyAs a certified Realtor® for the top-rated Columbus Realty Firm - Vision Realty, with 32 years of dedicated real estate experience, I can help buyers, sellers, investors, short sale sellers and more find, sell or invest in the right property, at the right price, at the right time. Contact me anytime for updates and information on the Columbus OH Real Estate market.

 

Donald Payne - Vision Realty, Inc.
4608 North High Street

Columbus, OH 43214

Toll-free: (866) 510-2223

Cell: (614) 323-4348
DonaldPayne@VisionRealty.com
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Comment balloon 1 commentDonald Payne • March 18 2019 05:55PM

Comments

Donald Payne very good report about rehab coverage for flippers.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) 8 months ago

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