Vacant property insurance products are designed to provide protection from damage or complete loss of a structure that is uninhabited.
Typical vacant property or unoccupied home insurance products will not cover fire, vandalism, liability or other claims on properties that are unoccupied.
Vacant or unoccupied properties are an increased risk. They are at a higher risk of loss because when a fire, flooding, or a theft happens, it takes longer before they are reported. Therefore, the damage tends to be more severe. Vacant properties are also more often the targets of vandalism.
Assuming there were fires on the premises of two properties—the occupied property and a vacant property—the fire taking place at the former would, in theory, result in less damage since it would likely be reported immediately by the inhabitants and would be put out more quickly.
Due to the increased insurance risk, insurance companies exclude these properties in standard property insurance policies.
There are a few reasons why your property may be seen as vacant:
- Rental Property– If you own rental property, there will be times in which your property is between inhabiting residents.
- Renovations Performed– You may also decide to perform renovations on a property you own. This would then cause it to be classified as vacant.
At Ford Agency in Hampton Roads, we will help you determine how long your policy terms should be in place based on your specific situation.
Policy terms start at 3 months up and can extend as long as you need.
We are knowledgeable about all types of vacant property situations and will walk you through determining what protection is right for you