Vacant Property Insurance

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What is Vacant Property Insurance?

Vacant Property Insurance is needed where there are no possessions pertaining to activity or occupancy in a structure, and the property is not being used for any other purpose. Most insurance companies will allow you a small window of time for a structure to be vacant, usually 60 to 90 days. After that period, they can cancel your homeowners, dwelling, or commercial property insurance policy. One of our property specialists can assist you in determining when your coverage will cease.

The reason insurance companies do not wish to continue insuring a vacant structure is that it becomes a target for thieves and vandals, and a haven for vagrants, and criminals. The most common losses resulting from this situation is theft of copper wiring and pipes, air conditioners, heaters, and other valuable items, as well as fires. This is easy to understand. If the property is unoccupied there is no one there to minimize or deter these hazards by making a quick call to the police or fire department.

Vacant Property Insurance may be purchased based on the length of time the owner thinks the property will remain vacant. Coverage can be purchased for one month, three months, six months, or one year. In most cases, the money paid for this insurance is non-refundable, even though the coverage automatically cancels when the property is once again occupied, or it is sold.

Who Needs Vacant Property Insurance?

Homeowners who have moved to a new home, but have not yet sold their old home;
Landlords and Real Estate Investors who have properties that have been not had tenants for over 60 days;
Contractors/Builders who have completed homes in their stock that have not yet sold; and,
Banks and Mortgage Companies that are holding repossessed properties awaiting sale.

When is Vacant Property insurance needed?

When a structure loses its occupant(s) for an extended period, usually longer than 60 days {check your policy for actual terms).
Whan a structure that is for sale, is empty and has been on the market for longer than the period allowed in your current policy.
Rental property that has not been occupuied by a new tenant within the period allowed in the property insurance policy covering the strucure.
For contractors, when a new structure has been completed and is still in your unsold inventory beyond the period allowed in the policy covering the structure.

Vacant Lots

A Vacant Lot is land that has no structures built upon it, so it presents no danger of property loss from any hazard, criminal or otherwise. However, it can generate liability claims in the event of an accident. A vacant lot especially tends to attract neighborhood children who can become injured on the property, resulting in medical responsibility for the owner, and possibly lawsuits. For more information on how to obtain coverage for the liability hazards that can develop from a vacant lot visit our Premises Liability Coverage page. The coverage is usually very inexpensive and can save you tens and even hundreds of thousands of dollars in legal and claims costs.

What’s Covered?

Natural and manmade disasters;
fire;
lightning;
wind and hail;
civil commotion;
liability;
vandalism;
malicious mischief; and
theft.

Other Factors to Consider:

Because of higher premium for vacant property coverage, you should try to keep the time of vacancy as short as possible.
To lower your risk of vandalism claims, your vacant house should not appear vacant. Maintain the property by taking care of the outside of the structure (cut the grass, pick up the mail, install automatic lights, and even park a vehicle in the driveway); this will make the vacant structure less attractive to vagrants and vandals.
If the structure is a dwelling, hire a house sitting service or ask a family member to live in the dwelling during the vacancy.

How do I get a quote?

Contact our quote department directly at (504) 441-RATE (7283) or click here for a quote.