Owning a vacant building can pose serious liabilities because vacant buildings are more susceptible to vandalism, undetected repairs, fire, and other losses. If you own vacant property, it is advisable to purchase vacant property insurance, also known as vacant building insurance or vacant dwelling insurance, to protect against risks.
In this article, we’ll discuss the ins and outs of insuring your vacant property and why it’s important. Let’s get started!
The following are the most prevalent risks to vacant properties:
Under certain policies, vacant property insurance can provide protection if your building goes unoccupied for as little as four days. It also protects against liabilities in the event someone is injured on your property and sues for damages. In some cases, it is required when a property owner dies and the property goes to an estate sale. It may also be a viable option if the property is in the process of being sold or if it is under construction and is uninhabitable.
In addition to purchasing coverage for a vacant building, take the following actions:
A typical vacant property insurance policy is one and a half to three times the cost of insuring an occupied home due to the increased risks associated with owning an uninhabited building.
The premium depends on a number of variables, including the property’s location, the security precautions you’ve taken, your deductible, the amount of coverage you have, the property’s value, and the number of real estate investments you have.
Installing a security system will significantly reduce your premium rates. Make sure it is turned on when nobody is home.
If your occupied property becomes vacant, it is imperative that you notify Property Insurance HQ immediately. If you fail to give us adequate notice (in some cases, the required notice is 60 days after it becomes vacant) and you suffer a loss, coverage may be denied.
We understand that unfavorable incidents can occur, but vacant property insurance can provide necessary protection. Contact us today for more details.
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