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Did you know that a traditional homeowners or commercial property insurance policy is not designed to provide coverage for a home or commercial property that is vacant for 60 days or more?
Typically, a vacant property insurance policy provides the necessary coverage you may need for your commercial building while it is vacant.
As thousands of residential and commercial properties are now popping up on the real estate market, successful property owners are dumping more and more of their savings into these investments and growing their portfolios.
But because of tough economic times for families and small businesses, foreclosures are still a frequent occurrence and many times, properties are left vacant.
Property Insurance Policy
While reviewing a traditional homeowners or commercial property insurance policy, some may be surprised to find a vacancy clause.
According to most personal and commercial property policy forms, if the insured is a building owner, the building is considered vacant unless at least 31 percent of its total square footage is occupied by a tenant or by the property owner.
An insurance carrier usually allows for a property to be vacant for no more than 30 days.
Because vacant properties are more vulnerable to arson, theft, vandalism and damage from water. Certain important coverage such as fire damage, theft, vandalism, etc. to a vacant home or property are typically excluded!
Vacant Property Insurance is?
To protect your investment the proper way, vacant property insurance is the best safeguard. Because the risk of loss to a vacant property is oftentimes higher than those that are occupied, protecting yourself with an adequate vacant property insurance policy is key.
Depending on the type of property you own, certain policies are made available to you. Let’s take a look at a few:
Vacant Home Insurance
Leaving your home vacant means you and your family are not regularly available to make sure things are always right.
A tiny water leak can turn massive in a vacant home and result in extremely costly water damage.
A pile up of leaves in your home’s gutters can go unnoticed for months, or even years, and result in damage to your home.
Vacant homes definitely require an adequate vacant home insurance policy to fully protect your investment while it is on the market for rent or sale.
But what do you do if you live in your home but you’re going out of town for a few weeks?
Is Your Home Vacant or Unoccupied?
Before you start to worry about your home while on vacation, it is important to understand the difference between a vacant home and an unoccupied home.
A home becomes unoccupied when it is left temporarily empty. This is common when a resident goes on vacation or spends time at a hospital for an illness. All personal property remains inside and functioning utilities.
A home is considered vacant when the homeowner, tenants or any other residents have moved out and taken all of their personal property with them. This includes furniture, clothing, etc. Utilities such as power, gas or water may be turned off.
How Much Does Vacant Home Insurance Cost?
Property owners typically ask whether or not vacant home insurance expensive?
The answer to this question: Surprisingly, vacant home insurance is not as expensive as one may think. The average cost of vacant home insurance is $65 per month.
Companies that insure vacant homes determine insurance rates using a few rating factors including geographical location, property size, property value, property age, and more. Older homes in areas with a high crime score, such as Chicago for example, can expect to pay higher premiums for vacant home insurance.
For accurate pricing, start a no obligation vacant home insurance quote.
Vacant Building Insurance
Property owners or investors who own a building that is vacant should really consider a vacant building insurance policy.
Commercial buildings are typically more susceptible to loss than homes as they can sometimes be out of sight, with no next door neighbors, and easily ignored by passersby and law enforcement patrolling the local community.
In our agency’s home town of Chicago, it is extremely common for vacant commercial buildings to be vandalized and trespassed by squatters looking for a place to hang out.
Vacant building insurance provides general liability coverage to protect yourself against lawsuits of injury brought up against you in the event of an injury or third party damage you may be liable for.
Vacant building insurance also ensures your property structure is protected in the event of a loss or damage due to fire, water, etc.
How Much Does Vacant Building Insurance Cost?
Vacant building insurance costs are underwritten and are based on a variety of factors including your vacant building’s:
- and more.
Typically, vacant property insurance on a 2,000 sq. ft. vacant building can cost anywhere from $800 to $1,900 per year (monthly payment options available).
Vacant Land Insurance
Vacant land insurance is something that many landowners face dilemmas with. Why buy insurance if there’s no property?
Vacant land insurance is typically composed of a stand-alone general liability insurance policy. General liability insurance protects yourself in the event of injury or other incident occurring on your vacant land where the injured party holds you responsible for negligence.
Unfortunately, in todays very litigious society, it is easy for property and land owners to get hit with expensive lawsuits. Vacant land insurance will help protect yourself financially and provide you with the peace of mind you need.
How Much Does Vacant Land Insurance Cost?
General liability insurance for your vacant land starts at about $42 per month. This obviously depends on a few factors including the size and location of your land.
Vacant Property Insurance: Your First Steps
Commercial property owners may face a slight dilemma reviewing a property insurance policy for their vacant building. Many insurance companies have their own underwriting guidelines see vacancy a little different than others. In most cases, carriers will deem the building as vacant if 30% or more of the property is unoccupied.
In a traditional commercial property insurance policy, carriers may cancel or exclude certain coverage if the property is vacant for 60 days or more. But you don’t want to find that out when it’s too late.
It’s vital for all entrepreneurs, investors and property owners to review their insurance policy very carefully to check for coverage exclusions you may be subject to.
Vacant Property Insurance Quotes
Insured ASAP Insurance Agency provides affordable vacant property insurance for property owners in the following states: