Vacant Property Insurance Covers All Shapes & Sizes
Homes, rental properties can be unoccupied for several reasons. A home’s current owner may have already bought and moved into a new house but hasn’t sold the old one yet. Perhaps an owner has invested in extensive upgrades to his building, requiring it to be unoccupied during the renovations. Maybe a military member stationed abroad maintains a home in the US that remains uninhabited the majority of the year. Or perhaps an apartment unit is empty while awaiting a new tenant. Whatever the case, let Woods Insurance be your guide to Vacant Dwelling Insurance.
Standard Home Insurance & the Owner Occupied Provision
Standard home insurance policies are written under the stipulation that the insured property be “owner-occupied.” This means the person or at least one of the persons paying the mortgage and the insurance premium must live in the building year-round.
Generally speaking, most home insurance policies will contain certain exclusions that kick in after a home’s left uninhabited over 30 days. In some instances, a homeowners policy might be completely nullified for inadequate owner occupancy.
Insurance policies for rental properties typically include provisions requiring some form of occupancy, too. These work similarly to those found in home insurance.
Vacant Dwelling Insurance: For the Vacant Property’s Unique Risks
Occupancy requirements are included in standard property insurance policies because unoccupied buildings—whether they're homes, apartment complexes, or something else—face a higher risk of certain perils compared to occupied buildings.
These differing risk ratios of vacant properties and owner-occupied buildings are the reason insurance carriers issue different policy types for the two.
Not Carrying Vacant Dwelling Insurance Could Impact Your Wallet
Some home insurance carriers allow homeowners to add a vacant property addendum to their existing policy. If you own an unoccupied property, it’s crucial to carry the proper coverage types.
If you insure a vacant property with standard home insurance and make a major claim, your insurance company will probably reject it once it learns you’re carrying the wrong policy. In fact, the entire policy will likely be nullified, leaving you financially responsible for all the property damages. Don’t leave yourself exposed to unnecessary risks, protect your assets with Vacant Dwelling Insurance.