When a property sits vacant for any stretch of time, it encounters a different set of risks than those facing an occupied structure. A vacant home insurance policy offers much-needed protection for these vulnerable structures. But how do you even know when you need it?
What is vacant home insurance?
Vacant structure insurance is defined as coverage that protects an unoccupied structure during a vacancy of more than 60 days. This insures the home against physical damage, burglary, and most other claims that would normally go under a regular homeowners policy.
Why can't I just have homeowners insurance?
If a water pipe in house you are living in right now were to explode, you would find out about it and take action within a relatively small time period. But what if that happened and nobody had been inside the house for over two months? The damage that burst pipe would cause is significantly more because the damage has more time to get worse and cause extensive damage.
This is the reason why vacancy policies are usually 2 or 3 times more than a normal homeowners policy.
Who buys vacant home insurance?
Because the primary condition for this insurance is complete vacancy, types of residential clients may vary somewhat. A few of the more common types include:
Landlords between tenants
Homeowners selling their residence after leaving the property
Homeowners traveling abroad.
Home acquired through inheritance
Homeowners making extensive repairs or renovations
What kinds of dwellings are eligible?
Residential vacant structure policies are available for completely vacant dwellings, provided it is well kept and in good repair. These properties can be awaiting sale or undergoing renovations, though it may depend on the extent of the remodel. Additionally, anchored mobile homes or those on a permanent foundation, as well as individual condominiums or townhouse units may be eligible for vacant structure insurance. If structures are going to be demolished, it’s unlikely they will be covered.
How do I find a vacant home policy?
Vacant home policies are much less common than a normal homeowners policy so make sure that what you are purchasing is a true vacant home policy. It’s a very good idea to get confirmation that the policy is a truly a vacant home policy in writing by the insurance agent or insurance company. Also limits as to risk value and specific coverage will vary by company.
Need help finding out if you need a vacancy policy? Give AZ Insurance Team a call and we will help you find the best policy for your individual needs.
AZ Insurance Team
*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.*