How to Find the Best (Not Just Cheapest) Vacant Home Insurance

Is your home vacant for more than a month? Beware! Standard homeowners’ insurance policies won’t cover it if something happens to your property. So, what’s the solution? It’s finding the best vacant home insurance to protect your house in case of disaster.

In this blog, we will focus on finding the right policy while keeping it under budget. Remember, the goal is not to just find the cheapest vacant home insurance, but something that covers your house fully while you are away!

How Much is Vacant Property Insurance Really?

Vacant property insurance costs depend on multiple factors, and giving one price will make no sense. However, here we have a general estimate.

The Average Cost Range:

Typically, short-term unoccupied house insurance costs are 1.5x to 3x of a standard homeowner’s policy. For residential properties, homeowner insurance won’t cover the property if it is vacant for more than 30 or 60 days, depending on your policy’s vacant clause. You can purchase a vacancy permit endorsement, though.

Key Factors Driving the Premium:

Short-term building insurance for unoccupied properties depends on multiple factors. Cost can be high or low depending on your specific case:

Duration: Empty property insurance policies often have a higher monthly rate. The reason is the increased probability of accidents, theft, and vandalism.
Security Features: If your home has security features installed, you will get better discounts. Insurance companies appreciate alarm systems and professional monitoring. It significantly reduces the chances of mishaps.
Claim History: Property history matters! Especially if you had a claim on unoccupied house insurance.
Policy Type: Named Perils are often cheaper and provide less coverage. Meanwhile, all risk policies offer more coverage at expensive rates.

Short-Term Solutions and Flexibility

Empty property insurance short-term policies are the perfect solution for under-renovation properties. Also, if you are a landlord, you can buy this policy between tenant changes to keep it protected.

The Need for Short-Term Coverage:

Coverage depends on duration. For small properties on rapid sale, a short closing window and quick renovation 3 3-month empty property insurance is more than enough. You can buy long-term insurance if you aren’t planning to live in or sell the property within 3 months.

Policy Options for Temporary Vacancy:

We have two options for the temporary vacancy:

Stand-Alone Short-Term Policy: You can get personalized 3, 6, or 9-month policies.
The Vacancy Permit/Endorsement: For an even shorter time, getting an endorsement for 30 to 90 days will be enough. It’s cost-effective for extended holidays lasting less than 3 months.

The ‘Unoccupied’ Rental Property Strategy:

Using Unoccupied Landlord Insurance for brief periods between tenants is usually cheaper than a full vacant home policy. If you are a landlord managing tenant turnover, you can benefit from this policy.

Specialty Vacant Property Scenarios

Vacant coverage policies are suitable for multiple scenarios. Especially when you need it for short-term purposes. Here are a few scenarios discussed in detail:

Vacant Land Insurance for Liability:

Any person who owns vacant land needs an insurance policy for it. It’s primarily for liability protection. Suppose someone is injured while trespassing, the liability insurance for vacant land will cover it.

Furthermore, insuring vacant land is very low-cost as compared to a dwelling policy.

Vacant Condo and HOA Considerations:

This might surprise you, but condo owners need vacant condo insurance policies. There is a gap in the HOA’s master policy. It only protects the exterior, so the interior becomes your responsibility. Getting a vacant condo policy ensures you are protected in case of interior damages and liability within the unit.

Vacant Home Renovation Insurance:

If the renovation is major and the home is uninhabitable, the risk changes dramatically. It is recommended to move from a standard vacant policy to a Vacant Home Renovation Insurance. You can also use a Builder’s Risk policy to cover the materials and the increasing value of the structure.

Finding the “Cheapest” and “Best” Insurance

Your goal should be to find the best vacant property insurance instead of the cheapest one. And the right way to get insurance for unoccupied properties is to hire a broker.

Basically, these are the people who understand the ins and outs of insurance policies. And by good fortune, Smart Apple has plenty of these expert brokers. We ensure you get the cheapest vacant home insurance rates and optimal coverage.

Why “Cheapest” Can Be Dangerous:

Cheapest policies can be a scam for new buyers. Most of the cheap policies have major exclusions, such as vandalism or theft coverage. However, these are the major reasons people buy vacant insurance. It’s like you are trading off coverage and premium.

Pro Tip: Go for all-risk policies for extensive coverage instead of named perils.

The Role of Specialty Carriers:

Standard carriers often decline this risk. You must seek out specialty insurers who deal exclusively with high-risk properties. If you are having trouble finding the right insurance carrier, Smart Apple Insurance can help you get one.

Final Wrap Up:

Getting the right insurance policy isn’t about finding the cheapest premium anymore. You must understand the policy coverage limits and how they work for your property. If you aren’t finding the right policy, you might end up with low coverage and loopholes in the policy.

A smart move is to contact Apple Insurance brokers for expert advice and the right premium policies.