Vacant property insurance is a policy that one can use to protect vacant or unused properties for an unspecified amount of time. Your client may need more than a standard policy to cover a vacant property, and owners may need to obtain Vacant Property Insurance to bridge the coverage gap.
What is Vacant Property Insurance?
Vacant property insurance, also called vacant home insurance, is a type of insurance coverage designed to protect properties, mainly residences, that are usually vacant. A person could obtain this as a separate policy or an add-on endorsement to an existing homeowners insurance policy.
It’s necessary to have this insurance because standard homeowners policies often do not provide adequate coverage, or any coverage at all, for vacant properties. It is due to the increased risks associated with vacant properties, such as vandalism, theft, and damage from environmental factors.
What is a Vacant Property?
The exact definition of a vacant property can vary depending on the insurance company. Still, in general, it is a vacant property when no one lives or stays in it for a significant amount of time (typically around 30-60 consecutive days).
It’s worth noting that vacant and unoccupied properties are not the same. An unoccupied property is a property that’s not being actively used but still contains the owner’s personal belongings. Significantly, these belongings can include items such as furniture, clothing, and other items. In contrast, a vacant property is one that’s completely empty.
What Does a Vacant Property Insurance Cover?
The policy may cover damages resulting from things such as fire, theft, lightning, vandalism, explosion, wind, and hail.
Insurance policies for vacant homes typically offer flexible coverage periods that range from three to twelve months. However, this can vary depending on the insurance provider. Insurance companies may also have specific guidelines for which types of homes are eligible for coverage. Consequently, these guidelines may limit coverage to a single-family property or extend it to up to a four-unit dwelling, for example.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039
