Did you know that a traditional homeowners or commercial property insurance policy is not designed to provide coverage for a home or commercial building that is vacant for 60 days or more?
Typically, a vacant property insurance policy provides the necessary coverage you may need for your commercial building while it is vacant.
As thousands of residential and commercial properties are now popping up on the real estate market, successful property owners are dumping more and more of their savings into these investments and growing their portfolios.
But because of tough economic times for families and small businesses, foreclosures are still a frequent occurrence and many times, properties are left vacant.
The Traditional Property Insurance Policy
While reviewing a traditional homeowners or commercial property insurance policy, some may be surprised to find a vacancy provision. A provision is a legal clause or condition within an insurance policy contract that requires one or more parties to perform a particular requirement, usually within a specified time.
An insurance carrier usually allows for a property to be vacant for no more than 30 days.
Because vacant properties are more vulnerable to arson, theft, vandalism and damage from water,
Certain important coverage such as fire damage, theft, etc. to a vacant home or property become excluded!
Vacant Home Insurance
Before you start to worry about your home while on vacation, it is important to understand the difference between a vacant home and an unoccupied home.
A home becomes unoccupied when it is left temporarily empty. This is common when a resident goes on vacation or spends time at a hospital for an illness. All personal property remains inside and functioning utilities.
A home is considered vacant when the homeowner, tenants or any other residents have moved out and taken all of their personal property with them. This includes furniture, clothing, etc. Utilities such as power, gas or water may be turned off.
Can a Vacant Home Be Insured?
Yes, a vacant home can be insured. Typically, traditional insurance companies prefer homes to be fully occupied to insure them. But in many cases, options do exist for vacant home owners who need their property insured. Coverage available under vacant home insurance includes commercial general liability coverage, property coverage, commercial umbrella, and more.
How Much Does Vacant Home Insurance Cost?
One may ask whether or not vacant home insurance expensive?
The answer to this question: Surprisingly, vacant home insurance is not as expensive as one may think. The average cost of vacant home insurance is $65 per month.
Companies that insure vacant homes determine insurance rates using a few rating factors including geographical location, property size, property value, property age, and more. Older homes in areas with a high crime score, such as Chicago for example, can expect to pay higher premiums for vacant home insurance.
For accurate pricing, start a no obligation vacant home insurance quote.
Vacant Property Insurance
Commercial property owners may face a slight dilemma reviewing a property insurance policy for their vacant building. Many insurance companies have their own underwriting guidelines see vacancy a little different than others. In most cases, carriers will deem the building as vacant if 30% or more of the property is unoccupied.
In a traditional commercial property insurance policy, carriers may cancel or exclude certain coverage if the property is vacant for 60 days or more.
How Much Does Vacant Property Insurance Cost?
Vacant properties can sometimes be classified as high risk, therefore a basic vacant property insurance policy may be 50% higher than the cost of it being occupied. A few factors are usually reviewed when determining the cost of a vacant building including building age, material, update, security, territory, etc.
With that in mind, vacant property insurance does not necessarily have to be expensive. Investors who understand what coverage(s) they need can significantly lower the cost of a traditional vacant property insurance policy.
Vacant Land Insurance
It is hard to imagine how one can insure vacant land. There is no real structure or risk of any type of damage, right?
Property investors are commonly unaware of risks that face a vacant property that also applies to vacant land. This risk is a loss due to bodily injury of any third party, whether this visitor was welcome, or not.
Vacant land insurance provides coverage for any claim of bodily injury or property damage if someone has an accident on your property and you are found to be at fault. If any third-party files a suit against you, it will also help to cover expenses such as legal fees.
Vacant land insurance provides commercial general liability coverage to help protect a land owner including his/her assets.
Vacant Property Insurance Quote
Any property, home or commercial building, vacant or occupied, is one of the most valuable investments you may have. If you’re in search for an affordable vacant property insurance policy, it is wise to get in touch with an insurance expert to help determine your specific needs. Getting insured by Insured ASAP has never been easier. Vacant property insurance quotes are available over the phone at (800) 641-7488