What Licenses and Insurance are Needed to Start Cleaning Foreclosure Bank Owned REO Homes

If you are thinking of getting started in the field of cleaning foreclosures and cleaning bank owned homes, being licensing and insured is a MUST!



All the Banks and Reo Asset Management Companies as well as Realtors require vendors to be properly licensed and insured to work on their foreclosure homes.  So, many people may be asking, “What licenses do I need to get started cleaning out the foreclosure homes?” Getting licensed to clean out foreclosures is very easy, a general business license is all you will need. Contact you local City or County Offices-they are usually the ones that issue business licenses.  The cost is anywhere from $25 to upwards of $100 at most.

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Getting the proper insurance for cleaning foreclosures and cleaning bank owned homes is also a MUST! Not only will it protect you and your employees if someone gets hurt but it will protect the bank and it is required by all the banks, asset management companies, and Realtors.  When shopping for insurance for cleaning foreclosures, you are going to want to get quotes for general liability insurance, a $1 million dollar policy limit is what all the banks and mortgage lenders require.  Shop around to get a few quotes as rates range and this will save you money especially when first starting out, we always recommend to get a minimum of 3 quotes to obtain the best deal. Many insurance companies have several payments options, you can even put a down payment down at the beginning and pay monthly for many of them.  You can also consider getting E & O Insurance, but it really is not needed or required in the industry.

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