Eric Hanpeter asked a great question about the big problem in getting insurance on vacant REO’s. Unfortunately that has become the norm lately but here is some solution -

Michigan Basic will insure a distressed property for upto 90 days under rehab. They are strict in their inspections which they periodically check upon on you. They will cancel your policy if it does not meets their standards. They are the only insurance company that we know will let you insure under rehab. Although we are strictly talking fire insurance only, structure only. No liability coverage.

Next, you can go to any other insurnace company, after the rehab is completed. Put a live alarm system with active montioring on it and that should satisfy the vacancy requirement after rehab. You can also board up the windows (although that has to be the worse possible solution) and that will also satisfy their criteria.

Insurance companies are becoming very strict on vacant properties - too many false claims coming in. And they have decided to just punish everybody. Unfortunate situation, but a necessary bitter pill to play THE GAME!