Roughly 300,000 fix & flip transactions were completed in the U.S. in 2025, accounting for 7.4% of all home sales.^[i] It remains a substantial segment of the real estate market, and for agents willing to specialize, this segment represents real book growth.

That said, this business has complexities. Admitted carriers typically decline these deals, hard money lenders enforce strict requirements, and closings move fast. Placing this business efficiently is a real skill, and with the right knowledge and specialty MGA and carrier behind them, agents can turn this segment into a reliable growth engine.

This guide walks agents through what fix & flip deals look like, associated risks, what coverage these properties need at every phase of the project, what lenders require, and how to place them efficiently.

What is a Fix & Flip Deal?

A fix & flip is a real estate investment strategy where an investor purchases a distressed or under-market-value property, renovates it, and resells it for profit. Timelines typically run 3 to 9 months from purchase to sale, though large-scope renovations can extend longer.

Fix & flip sits alongside a few related property categories agents often see together: vacant properties, active renovation projects, and rental properties. Properties typically move between these categories as the project progresses. An investor may purchase a vacant property, renovate it, and find it sitting vacant again while searching for a buyer. Or, if it does not sell at the target price, they may convert it into a rental instead. A fix & flip deal is fluid, so coverage needs to adapt as the property moves through each phase.

In addition to understanding the various phases of a fix & flip deal, it is important to understand the different types of investors agents may work with. There are three distinct investor groups and coverage needs, complexity, and turnaround expectations vary meaningfully across them.

	First-time / part-time flippers	Career flippers	Portfolio managers
Experience level	Often first-time or side-hustle investors	Full-time real estate investors	Very experienced partnerships or small firms
Who you work with	Individual investor	Individual investor or dedicated Operations person	Dedicated Operations person
Number of flips	1-2 flips over the last two years	3-10 flips per year	5-20 flips per year
What to expect	Investors at every level of experience will want fast turnaround times.
What to expect	May require more hands-on agent support; cost is often a key consideration.	May want a portfolio or master policy covering multiple properties simultaneously; experienced enough to have specific coverage preferences by property type and project .	Often manage a mix of fix & flip and rental properties; tend to prefer master policies with broader coverage. Decisions often involve multiple stakeholders and financing structures.

Risk Factors with Fix & Flip Deals

Admitted carriers rarely write fix & flip properties, and the reasons come down to underwriting fundamentals: these deals combine several risk factors not typically found with primary residences. Understanding these specific factors helps agents explain the coverage need clearly to clients and lenders and confidently place the business in the right market from the outset.

Vacancy exposure

Fix & flip properties can sit vacant for weeks or months during renovation. Vacancy can create meaningful risk of theft, vandalism, water damage from undetected leaks, and other perils since the property is unoccupied.

Active job site liability

Contractors, subcontractors, inspectors, realtors, and other visitors are on the property during renovation, each representing potential bodily injury exposure.

Short ownership window

The 3-to-9-month project timeline does not fit the traditional 12-month underwriting cycle standard carriers are built around. Their systems and pricing assume long-term ownership.

Non-owner occupied

The investor does not live in the property. There is no daily monitoring, no occupant incentive to protect the asset, and no continuous presence to detect problems early.

This is where the Excess & Surplus (E&S) market becomes essential because it is built for exactly the risks traditional carriers cannot cover. For agents looking to expand into this business and help investors obtain insurance for flipping houses, finding the right specialty carrier is the first step.

Fix & Flip Coverage for Every Phase

Understanding the risk factors is the first step. Knowing which coverage to place at each phase of the project is what puts agents in a position to win this business.

Fix & Flip Insurance Coverage Types

Coverage Type	What It Covers
Vacant Property Insurance	Theft, vandalism, water damage, and liability on unoccupied properties
Dwelling Policy with Builder’s Risk Endorsement	DP1 or DP3 with specific builder’s risk endorsements that cover the following for renovations: physical structure, materials on-site; available in actual cash value, replacement cost, or agreed value.
Builder’s Risk Policy	A specific policy that covers the following for ground up construction or major renovations (structural changes or additional square footage/stories): materials during construction, work-in-progress, and construction-specific perils.
Landlord Insurance	Physical structure, landlord liability, loss of rental income
General Liability	Third-party bodily injury, contractor accidents, trespasser incidents
Wind, Hail, and Flood	Windstorm, hail damage, and flood losses

Fix & flip deals move through distinct phases, and the coverage needs to adapt with each one.

1. Property Acquired

The investor has purchased the property, but renovation has not started and the property is sitting vacant.

Applicable policy types:

Vacant property insurance
General Liability
Wind and hail if not included in vacant property insurance
Flood coverage

2. Active Renovation

Construction is underway, contractors are on-site, and the property is now an active job site.

Applicable policy types:

A dwelling policy with builder’s risk endorsement for cosmetic renovations or lighter rehab work
A builder’s risk policy for major renovations or ground-up construction
General Liability
Wind and hail if not included in dwelling or builder’s risk policy
Flood coverage

3. Post Renovation

Renovation is complete, the property is listed for sale or rent, but it is unoccupied.

Applicable policy types:

Vacant property insurance
General Liability
Wind and hail if not included in vacant property insurance
Flood coverage

4. Transition

The project reaches its endpoint: the property either sells (coverage ends as the buyer is now responsible) or the investor converts it into a rental.

Applicable policy types:

Landlord insurance if the investor chooses to rent the property
General Liability

Additional Coverage Details

General liability is a necessity on any fix & flip property. This coverage can typically be bundled on the dwelling or vacant policy. Or, if the investor has several properties, they may want a standalone general liability policy covering all their properties.

Wind and hail coverage is another policy that may be needed at all phases depending on the property’s location. In coastal areas in states like Texas and Florida, this coverage is often carved out and requires separate policies or endorsements. Flood coverage is almost always a separate policy through the NFIP or a private flood market. Agents writing in coastal regions should confirm what is included and what is separate before binding, because these gaps become expensive at claim time.

What Lenders Require on Fix & Flip Deals

Most lenders have specific insurance requirements that must be met prior to closing. Getting the binder right the first time helps clients’ deals close on time. That is critical for client satisfaction and the agent’s reputation with both the client and the lender.

How Fix & Flip Deals Are Typically Financed

Fix & flip investors rarely use traditional bank financing. The short project timelines, speculative nature, and rapid closing timeline make conventional loans a poor fit. Instead, most fix & flip deals are funded through:

Hard money lenders: Private companies that lend short-term against the property itself as collateral. This is the most common financing source for fix & flip deals and includes a wide range of lenders from institutional players to small private shops.
Direct investors: Individual or private entities that fund deals directly via their own capital rather than through a formal lending business.

What Hard Money Lenders Require

Hard money lender requirements can vary meaningfully from lender to lender. Always ask for the lender’s specific requirements, such as the coverage amount and mortgagee clause, upfront. This single habit will help prevent most binder rejections.

Most hard money lenders have specific coverage requirements because the property is the sole asset securing the loan. Protecting it is protecting their investment. Common requirements include:

Builder’s risk endorsements on active renovations
Vandalism coverage on vacant or partially vacant properties
Specific coverage minimums equal to the loan amount, sometimes exceeding the current property value
Specific effective date requirements tied to closing

Every fix & flip lender, regardless of type, will require these three elements. Getting them right is the baseline for a clean closing.

Minimum coverage amounts. Typically equal to the loan amount, though full replacement cost is often what lenders actually prefer. Agents should confirm which the lender wants.
Additional insured. The lender must be added to the policy to receive notifications of any policy changes, renewals, or cancellations.
Loss payee. The lender is designated as loss payee on the policy, meaning any claim payment will include the lender as a co-payee on the check. This protects their financial interest in the property and is separate from additional insured.

Common Mistakes That Delay Closings

These are the errors that get binders rejected at closing and delay deals:

Missing additional insured or loss payee designation
Wrong effective dates that do not align with the actual closing date
Wrong insured party, for example the investor’s personal name when the property is being purchased under their LLC
Coverage amount below the loan amount
Missing endorsements the specific lender required but the agent did not ask about upfront

When sending a policy, it is worth a quick double check to ensure these items are accurate.

How to Efficiently Place Fix & Flip Coverage

Speed matters in fix & flip. Efficient placement comes down to a few habits.

Gather property info upfront: Before requesting a quote, collect the essentials: property address, purchase price, project scope (cosmetic vs. structural), expected timeline, lender name, the lender’s requirement sheet, and the investor’s entity structure (personal name vs. LLC).
Match the term to the project length: Match the term to the project length: Fix & flip policies are commonly available in 3, 6, and 12-month terms. Matching the policy term to the project timeline means the investor is not overpaying for coverage they do not need. Selecting the right insurance policy for house flipping starts with getting the term right.
Get appointed with the right carrier or MGA: Not every carrier or MGA writes fix & flip business. Agents should find those with clear fix & flip appetite, fast quote-to-bind, lender-compliant policy structures, and a digital platform that supports rapid placement.

How Monarch Sky’s SmartFlip Program Can Help

SmartFlip is Monarch Sky’s Excess & Surplus (E&S) product built specifically for fix & flip, vacant, renovation, and rental properties. It was designed from the ground up to solve the placement problems agents face when sourcing insurance for house flippers.

What makes SmartFlip different for agents:

5-minute quote to bind. Fast turnaround protects deal timelines and gives agents a real speed advantage.
Flexible terms. 3, 6, 9, or 12-month policy options to match the project length, so investors are not overpaying for coverage they do not need.
Flexible coverage options. Agreed value or replacement cost, with optional builder’s risk endorsement to match the project scope.
Investor-focused. Meets most lender requirements out of the box, including additional insured, loss payee, and appropriate coverage amounts.

The Bottom Line

Fix & flip is a real growth opportunity for agents who understand the complex placement mechanics. Working with a specialty MGA built for this business solves the problem, and it opens up a category of clients not all agents can serve today.

Ready to learn more? Get appointed with Monarch Sky or request the SmartFlip appetite guide.

Frequently Asked Questions

What is fix & flip insurance?

Fix & flip insurance, also referred to as flipping insurance or house flipping insurance, is a specialty property insurance product designed for real estate investors who buy, renovate, and resell properties. It differs from standard homeowners insurance because it accounts for the unique risks of vacant properties, active renovations, short ownership windows, and non-owner-occupied structures. Fix & flip coverage typically bundles a dwelling policy with a builder’s risk endorsement.

What kind of carrier typically offers flipping insurance?

Admitted carriers typically decline fix & flip properties because these deals combine multiple risk factors. Agents typically need to place fix & flip business through the Excess & Surplus (E&S) market via specialty carriers or MGAs like Monarch Sky.

How much does fix & flip insurance cost?

Fix & flip insurance costs vary based on several factors, including property value, location, project scope, term length, and coverage options selected. Higher-risk locations (coastal wind zones, higher-crime areas), longer renovation timelines, and broader coverage endorsements all increase the premium.

What coverage does a hard money lender require on a fix & flip deal?

Hard money lender requirements vary, but three elements appear on nearly every fix & flip binder: (1) minimum coverage amounts equal to the loan amount, often with full replacement cost preferred; (2) the lender named as additional insured to receive notifications of policy changes; and (3) the lender named as loss payee so claim payouts protect their financial interest. Agents should always request the lender’s specific requirement sheet upfront to avoid closing delays from missed endorsements.

How long does it take to bind a fix & flip insurance policy?

Standard-market placements can take days or weeks. With a specialty MGA built for investors and the coverage they need, quote-to-bind can happen in minutes. Monarch Sky’s SmartFlip program is designed for 5-minute quote to bind, so agents can keep pace with the fast closing timelines fix & flip deals require.

Do agents need general liability on a fix & flip property?

Yes. General liability is needed on any fix & flip property because renovations are active job sites. Contractors, subcontractors, inspectors, and even trespassers create third-party bodily injury exposure that dwelling coverage alone does not address. Some agents overlook this on smaller cosmetic renovations, but the liability exposure is real regardless of project scope. Note that general liability may not extend to hired general contractors, who typically carry their own coverage.

[i] ATTOM. 2026. “2025 Year-End U.S. Home Flipping Report.” March 19, 2026. https://www.attomdata.com/news/market-trends/flipping/2025-year-end-home-flipping-report/