Flipping is a popular real estate investment strategy that involves buying, rehabbing, and either selling the home for a profit or renting it to tenants. While some investors prefer to hire a general contractor for the rehab process, others take a more hands-on approach. If you’re the latter, you might be surprised to learn that standard premises liability policies may not provide adequate coverage for the liability exposures you face. To bridge those gaps in coverage, NREIG developed FlipShield.  

Who needs FlipShield?

FlipShield is a liability policy designed for property owners who perform some or all of the renovation work themselves and are not professional contractors or artisan/subcontractors. As an investor, you likely do not have access to the specific liability coverages that professional contractors benefit from. And while Premises Liability is one of the most important coverages to have, it does not fully address your unique liability exposure as a DIY flipper.  

What does FlipShield cover?

FlipShield is designed to protect you from claims of property damage, bodily injury, and other non-physical damages. The following are some scenarios in which FlipShield may provide coverage: 

Products & Completed Operations (P&CO)

  • Let’s say you built a deck as part of your flipping operations. The deck is considered a product or completed operation. If the deck fails and causes bodily injury, defense costs and awarded damages may be covered.  

Personal & Advertising Injury

  • If a person or entity claims you made false or damaging statements about them in your marketing materials, and they suffered as a result, defense costs and awarded damages may be covered. This includes defamation claims which encompasses libel and slander.  
  • If a person claims you invaded their privacy through your advertising or marketing practices, such as using their image without consent, defense costs and awarded damages may be covered.  

Coverages Limits 

Products & Completed Operations 

  • $1MM per occurrence, $2MM aggregate 
  • Coverage is extended one year after the expiration date of the policy. 

Personal & Advertising Injury  

  • Included 

FlipShield is an annual policy with a flat cost per flip and subject to 100% earned premium. This policy is eligible for one annual term renewal. TRIA is included. 

 

FlipShield can be purchased as a stand-alone option. Submit your property information using our online proposal request to receive a custom proposal. Don’t hesitate to contact your Client Service Advisor with any questions!