Vacant Property Insurance
Insurance Companies have significant coverage limitations once a home or building becomes vacant or unoccupied for specific time periods. Unless you have a policy specifically developed to insure vacant homes, you may be seriously limiting your available coverage. We can provide Vacant Property Insurance in most States.
What is Vacant Property Insurance and What can it Cover?
- You have the option to have Replacement Cost Coverage or Actual Cash Value Coverage
- Deductibles usually start at around $500-$1,000 and go up to over $10,000 in some cases
- Be sure to include Vandalism and Malicious Mischief Coverage (VMM)
- Water Back Up of Sewers and Drains Can be Included with Select Insurance Companies
- When endorsed, coverage for renovations can be included on the vacant home policy.
- Vacant Insurance can include homes deeded to ‘The Estate of’…
- Unoccupied Homes and Homes that are listed for Sale may need Vacant Property Insurance
- Many additional coverage considerations are available.
WHAT TYPE OF CLAIMS USUALLY HAPPEN WITH VACANT HOMES?
Double Check Your Vacant Property Policy Coverages and Limits
Unlike some of the better home insurance policies available, an unendorsed Vacant Home Policy could leave much coverage to be desired. Below you will find a list of some common items to consider when looking into or purchasing Vacant Property Insurance.
Every time our agency has seen a total loss due to a fire, 100% of the time the base building limits of insurance are completely depleted, used up entirely. Be sure to understand the difference between Replacement Cost Coverage and Actual Cash Value Coverage and which one is included on your vacant property insurance quote or vacant home policy.
Many vacant home insurance companies specifically exclude losses due to water damage. That is why it is important to see exactly what is included in your vacant home quote or policy. Because Water Damage in Vacant Homes is one of the most common causes of losses we see, our Vacant Home Insurance Agency tries to make sure water related damage is included. You always should double check.
I remember when my Dad owned Kelly Insurance Group and he would regularly see deductibles of $500 or less. Now, as if property insurance rates weren’t going up fast enough prior to covid, our new normal for non coastal properties starts at $1,000. If you have a home with insurable values over $500,000 it would be a consideration to see what a $2,500 or a $5,000 deductible would look like in terms of premium.
When you are searching for Vacant Home Insurance, be sure to review the specific vacant property insurance coverages listed in the quote or policy. Often times you must specify whether you want liability coverage included for the vacant property. Liability Coverage would help protect the vacant property owner from bodily injury lawsuits in the event someone slips on the property due to the negligence of the property owner.
When we refer to VMM, we are referring to the coverages of Vandalism and Mischief. Some vacant property insurance policies will exclude coverage for losses when they are caused by crime or ill-intent. Foremost Specialty Insurance, amongst some of our other choice carriers, must have VMM coverage actively endorsed, or chosen by the customer, in order for there to be coverage for this type of loss.
It doesn’t hurt to see what coverages are available under a vacant home quote. Remember you can always remove the coverages you don’t feel are necessary once you see the estimate. Ask your insurance agent ‘What else can be included on this vacant insurance quote? Is there anything I am missing in terms of coverage? Do you have any suggestions? Did you run a replacement cost estimate?’