Your First Fix and FlipYou just acquired your first Fix and Flip property, and are ready to begin your adventure becoming the next Fixer Upper. You’ve lined up contractors to do the dirty work you aren’t able to do yourself. You know the area you will focus on to buy and sell homes. You have a marketing plan to get the house sold as quickly as you finish. What have you forgotten?
In the world of insurance, there are many different types of insurance policies. Each of these policies has coverage for that specific policy type such as an automobile, home, and life policies. Insurance is important and sometimes required by law. People know this requirement, so they purchase a policy. The question is, do they really know what the policy covers or does not cover? Probably not. There are insurance companies who care about their clients and believe that if they are going to spend the money, the policyholder should know what’s included in coverage and if there are any restrictions. Vacant home insurance is one of those that you need to pay attention to.
Inexperienced homeowners and property investors will often look for an insurance policy that covers their structure and land. When an investor obtains a blanket policy, he might believe the coverage encompasses the items within the building, as well as the contents. Homeowners and investors may also search for unoccupied home insurance and/or vacant home insurance, which are not considered to be the same coverage when claims are submitted. Understanding the differences between the unoccupied home and vacant home insurance definition, policies and coverage is imperative to protecting assets.
Investing in real estate is one of the smartest ways to gain wealth during a relatively short time period. When a property is unoccupied, insurance for investors is needed to protect that investment. One investor might own three or four different properties, but they aren't always occupied. Certain properties might be waiting for rental to begin.
Homeowners are accustomed to purchasing household insurance, including flood coverage, so that their residence is secure in the event of an emergency. However, it's critical to read these policies and their limitations. If homeowners aren't living in the home, many policies void their coverage. The best way to avoid any household risks is by purchasing vacant home insurance.
When homeowners live in one property and rent out another, this second home isn't always full of tenants. There are times when the rental home is vacant for weeks or months at a time. Because property owners can't be present at both homes simultaneously, insurance companies offer some peace-of-mind with unoccupied property insurance. This policy type isn't familiar to every homeowner, however. It's important to know what kind of coverage comes with vacant home insurance to protect the owner's finances.
Homes remain vacant for a variety of reasons, from off-season vacation rentals to long real estate escrow periods. Although no valuable items may be inside the structure, the property itself still requires vacant home insurance. Several reasons exist that prove unoccupied property insurance is a necessity to protect structures and owners.