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Vacant Property Insurance - An Overview

Most insurance companies will allow a property to remain vacant for a set period of time, often 60 or 90 days, before terminating or restructuring the insurance. It is important to differentiate between "vacant" and "unoccupied". An unoccupied property is idle with the intent of using it; a vacant property is one in which there are no possessions pertaining to occupancy or activity. Some insurance companies will allow you to keep your primary insurance while a property is undergoing renovations or up for sale, while others require a more expensive plan. There are many reasons why people may require vacant property insurance. One of the most common situations is when a previous owner dies and the property goes to estate and is on sale. If you are in the process of changing ownership or undergoing repairs you will also most likely need vacant property insurance.

Vacant property insurance is more expensive than normal property insurance because of extra risks involved. Vandalism is far more common in unoccupied houses, as well as theft. Squatters can take over a property if it is not properly monitored and cause untold damages to houses and property. Many damages caused by vandals and squatters may not be immediately apparent upon inspection and thus go unnoticed for long periods of time. Fires and blatant destruction like breaking windows are more likely to happen many times over.

Depending on your situation, it is very possible to reduce the premium on vacant property insurance if the correct steps are taken. Houses up for sale are targets for reduce rates because the owner had a clear plan and is most likely keeping tabs on the property to show to potential buyers. Having someone check on the house daily reduces many of the risks associated with vacant houses and will certainly get you better rates. Hiring a house sitter may be expensive, but there is a strong chance that it would offset the costs of higher premiums. Making your vacant home appear occupied is the best route: mow the lawn, pick up the mail, turn on lights, and leave a car in the driveway. If the house is to be completely vacant for a period of time, seal off all windows, doors, and letterboxes so that risks of theft and fire are reduced.

Make sure to talk to the insurance company about the current situation and future plans of a house when discussing insurance costs, as a responsible owner who appears to care about their property will instill confidence. In many situations you may be able to keep the same coverage at slightly increased costs by making all the right moves. Your best bet is to try to make the amount of time the house remains vacant as short as possible, as rates will begin to climb even higher as years pass by. Make sure that the property is as safe as possible so that possible liability suits from situations like kids getting hurt are less likely to happen.

It is entirely possible to find a vacant property insurance policy based on a standard policy just refocused for the different needs. Get a few quotes and look for companies willing to work with you to lower premiums by making the house as safe as possible. Vacant property insurance is more popular than ever in today's sagging real estate market, so many insurance companies are very willing to find a policy that will work for everybody. Ask about endorsements to existing policies and work from there. As long as you have a plan, vacant property insurance can be a pain-free process.

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