29 Sep Unoccupied Property Insurance and 4 Reasons You Need It
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.
Severe Weather Protection
Property owners could live thousands of miles away from their investment. Because of the distance, owners cannot rush out to a property when severe weather or natural disasters threaten the structure. Owners must rely on their unoccupied property insurance to cover any potential damages. When the situation abates, owners can visit the property to see the damages and file a claim. Most natural disasters and storm damage should be covered under typical policies.
Unoccupied Property Insurance and Trespassers
Vacant home insurance also protects owners from lawsuits. If people break into the home and injure themselves, for example, they can sue the property owner for damages. Trespassers are charged with criminal activity, but homeowners may pay for medical bills incurred from injuries on the property. Insurance policies protect owners from substantial financial loss in these cases. Any medical costs are usually expensive out-of-pocket.
Even the best neighborhood has some criminal elements, leading to possible vandalism. Spray paint, broken windows and other structural losses are expensive repairs to take on without insurance. Homeowners simply need to schedule an insurance adjuster at the property to file a claim. Insurance funds pay for repairs, giving the home an updated look for potential rentals or sales. Leaving vandalized items in place only reduces property values over time.
Protecting Pending Sales
Homeowners could be midway through a property sale. Buyers have already examined the home, expecting it to remain the same until escrow closes. Unoccupied property insurance keeps the home in prime shape until the sale is finalized. Severe damages, including arson, are covered under these policies. Property owners should read through their insurance paperwork to verify all potential damages are covered when sales are pending. Any issues that occur during escrow, from vandalism to storm damage, can be fixed with little investment.
Property owners should find an experienced insurance agent dealing exclusively with vacant home insurance. These professionals understand this unique insurance niche, giving homeowners assurance that their investment is safe when they aren’t nearby. Owning real estate is a privilege that must be protected with adequate insurance coverage.