Vacant Home and Building Insurance
Did you know that most, if not all, homeowners insurance and commercial insurance policies will exclude a building that is vacant from having coverage? With commercial insurance, there can be a threshold where there is no coverage and it can be as low as 35% and can even go higher depending on the company insuring it.
Why is Vacant Building Coverage Needed?
If there is items stolen, damage done to the building, or if someone is hurt on the property you could be left with a big bill as you could have no coverage! Here are some claims scenario’s that have happened.
- Property Loss: Vandals broke into a house, which was recently vacated. There was $15,000 in building damage.
- Property Loss: A Commercial building owner had just signed a lease with a new tenant to rent his building. Two days before the tenant moved in there was a lightning strike damaging the HVAC system. It took 4 weeks to repair the damage and the tenant could not move in until all repairs were made. The owner suffered a property loss to the building of $4,000 and loss of rental income of $1,200.
- General Liability: A child tripped and fell while walking on the cracked sidewalk in front of the insured’s property and he child sustained a broken ankle and $4,500 in medical expenses.
There are many more like these, and that is why you need vacant building insurance.
Vacant Building Insurance Package
The type of policy you need is a Vacant Building Insurance Package, this will give you the liability and property coverage you will need. The coverage for vacant buildings differs from standard policies and not all policies are created equal. Make sure you read your policy and your quote.
Eligible properties can be vacant commercial buildings, vacant homes, partially vacant buildings, vacant condo units, vacant leased space, and buildings undergoing renovations. When you have a building undergoing renovations you could have this as well as a Builder’s Risk policy.
A Vacant Building policy will generally coverage the standard General Liability coverage. When it comes to property insurance there is a bit of a difference as the property coverage form can vary depending on the type of building and its features. You need to make sure you talk with an agent to verify the coverages offered on the building and what types are excluded. Contents coverage is offered as well is you have any contents in the building.
Contact us today for a quote if you need coverage for a vacant building!