Temporary property vacancies are a reality that every landlord must deal with from time to time. Here are some vacant property insurance tips and information about keeping your property properly insured when it is vacant or unoccupied.
How Insurance Companies View a Vacant Property
Insurance companies view an empty property as riskier to insure than a property that is occupied. With nobody living there, a property can begin to look uninhabited-an open invitation for burglars to strike. Also, in the event of a sudden emergency like a fire, there is nobody to discover it and make a call to the fire department or other emergency response agencies. Finally, since no one is living there to protect the property, it is more likely to be damaged by trespassers or squatters.
What is a Vacant Property?
A vacant property is generally defined as a property where nobody is living and all belongings are removed. An unoccupied property is a property that is empty for a period of time, but belongings are still at the property. Since insurance companies usually have their own definitions, we can help you learn how about the way that your own insurance company defines a vacant or unoccupied property.
Insurance for a Vacant Property
Often, insurance coverage for a vacant property is a little more expensive thanks to the increased risk, but it is well-worth the peace of mind. According to the National Association of Insurance Commissioners
, some insurers may not pay claims if a home is vacant for 60 days or more. Some insurance companies may even include a vacancy clause, which excludes coverage if an incident occurs during a period where the property is empty.
Your Insurance Agent Can Help
Madison Avenue Insurance can offer endorsements and vacancy policies to help protect landlords
and protect the property while it is vacant. Contacting your insurance agent before a period of extended vacancy may cost a little more in the short term, but the protection of your insurance policy could be invaluable if an incident occurs, and actually save you money in the long run.
Do you have questions about your property? Want more Information? Call Madison Avenue Insurance, at (425) 481-1430