Insurance requirements on a vacant renovation near 3 million dollars look nothing like a standard flip
A renovation on a house listed just under $3M often comes with insurance requirements that look nothing like a typical job. Builder's risk at full replacement value, a vacancy endorsement, and a certificate naming the lender are common on that scale, and a general liability limit that was fine for years of standard work can suddenly be too low for the contract. The useful distinction is which requirement comes from the lender and which comes from the policy itself. Builder's risk and the vacancy endorsement are typically underwriting requirements tied to the property sitting unoccupied during construction, and they exist independent of any loan. The certificate naming the lender and the elevated liability limit usually come straight from the loan documents as a condition of funding. Anyone doing service work on high value renovations for the first time should expect both categories to show up together and should get the requirements in writing before pricing the job, since the coverage itself often costs more than the contractor budgets for.
