insurance

yikes! how the heck do you insure a project house that's vacant? anyone have any good ideas? last time i just help my breath. this time, it aint gonna be that easy.
do the banks require insurance in order to get a construction loan?
if so, people must have done this before, right?
whats the best way to tackle it?
-kk

I'm sure the escrow company will require insurance for a construction loan. I can't imagine any bank releasing funds for a construction loan without insurance. Call your current homeowner's insurance provider and ask for an agent who specializes in course-of-construction loans. Or, you can call an insurance agency out of the phone book and ask around.

Good Luck!

Sara

I'm not sure what you mean by a project house that's vacant. Do you mean an existing house that you're remodeling? Your insurance company should be able to offer an appropriate policy. It's basically just fire and catastrophe (e.g., tree is struck by lightning, bursts into flame, and falls on house) insurance, and not that different from the policy that you would get for new construction. You'd be required to insure for the full appraised value of the property. The only real limitation that I know of is that you usually can't carry that kind of policy for more than a year.

-Steve