Why do I need vacant house insurance?
Vacant house insurance is probably the least expensive way to make sure that you are protecting your investment properly. After all, most people with an unoccupied house are keeping the house because they want to sell it in the future. Without the proper insurance, your asset could become a liability.
Vacant House Insurance is Different Than Regular Homeowner's Insurance
The biggest reason why you need to make sure you have adequate insurance is because without it, your house isn't covered. The main reason why vacant house insurance is different is because no one is living in the home, so there tends to be more risks than occupied ones (except when there is a bad tenant!).
Unoccupied or vacant homes have higher rates of liability due to vandalism, fire, water damage (broken pipe going unnoticed for days, weeks, months), and other types of deferred maintenance that go bad quickly. These are only some of the serious issues that can happen.
The Burglar is Suing You?
Have you ever heard of a burglar suing a homeowner for getting injured at a home? Well, guess what? It happens! They can file a claim against you and even worse, they can sue you. So now we have to worry about broken floor boards, broken glass, old fences falling down, you name it.
Specific Insurance Just for Vacant Homes
Typical homeowners policies won’t cover these typical risks when it’s for a vacant home. That’s why vacant home insurance is such a good idea and why you have to request it. This type of insurance costs more than regular homeowner’s insurance and you have to make sure your coverage is for a vacant home. The cost is based on multiple factors such as the city and state the house is located in, the level of coverage you select, and the house's existing risk factors.
In my next blog, I will talk about vacant house insurance in more detail. Most importantly, if you have a vacant home, make sure you are covered by insurance. While the specifics of what kind and how much can effect your coverage, the first and most important step is to get covered.
If the reason your house is vacant is because you inherited a house, please download the free guide on selling an inherited house.