What You Need to Know About Vacant Home Insurance
The homes that are vacant present a larger insurance risk than occupied ones. The response time in case of an emergency is significantly slower in a vacant home. There is also an increased risk for a break-in. Due to risks such as these associated with vacant homes, the insurance companies have excluded them from mainstream homeowner’s policies. Vacant home insurance Policy has become a necessity for protection of your vacant properties.
Difference between a Homeowner’s Policy and Vacant Home Insurance
A homeowner’s policy does not provide coverage if you are in a habit of leaving your home for weeks at a time. If damage occurs to your property in your long absence, for whatever reason, it will remain unclaimed. You will have to pay for those damages out of your own pocket. However, all hope is not lost. Vacant Home Insurance policy provides coverage for such an incident.
Coverage Parameters of a Vacant Home Insurance
Vacant Home is a specialty insurance. It provides coverage for an uninhabited house. It provides coverage for fire, vandalism, liability or any other damaging incident on concerning your property.
Vacant Home Insurance can be purchased as a separate policy. You can also receive it as an endorsement. If you purchase it separately, you will not need to pay for a standard homeowner’s policy. However, if you purchase it as an endorsement, it will serve as an add-on to existing homeowner’s policy.
The Circumstances for Needing Vacant Home Insurance
You might need to purchase Vacant Home Insurance Policy, if you leave your home vacant for 30 days or more. Most insurance companies deny the claim, if they are made on a home that remains vacant. That is why it is necessary. If you plan to leave your home unattended for long stretch of time, you must make a contingency. You must ask your insurance provider their policy for unattended homes. It is possible they may have policies to cover limited vacancy. And if they do not, you must purchase the appropriate policy.
When need for Vacant Home Insurance Policy arise?
A homeowner may find him or herself in need for vacant home insurance policy in more circumstances than they think. Following is a list of likely scenarios where its need may arise:
- You may need this policy for a vacation home you own that you visit only few times a year.
- A newly purchased house may require this policy. But moving in will take some weeks or months. You may need this policy for any damage that may occur after your purchase and before your moving in.
- You might need this policy if you have a job or business which involves constant travel.
- If you have a medical procedure which requires you to stay in hospital for weeks, you might need it.
- In case you are living somewhere else, while your house is undergoing renovations, you need this policy.
- If you are renting out a home and are in between finding tenants, you will need this policy.
Difference between the terms of Unoccupied and Vacant
An ‘unoccupied’ home is usually fully furnished with all the utilities set up. It is ready to be used as a residence. A ‘vacant’ house is completely empty. It does not have any furniture or utilities set up. It is not ready for a residence.
Vacant houses pose a higher risk to insurance companies as compared to unoccupied homes. That is because unoccupied homes are more likely to be reported quickly to authorities in case of an accident. As a result, the damages would be less severe to an unoccupied home. The authorities will be able to contain it in a timelier fashion. The determination of your house as vacant or unoccupied affects your overall insurance rates greatly.
Availability of Vacant Home Insurance
Most homeowners who are looking to purchase vacant home insurance may do so through their regular company. The companies that offer regular homeowner’s insurance also offer vacant property insurance policy to those who require it. Some large national insurance organizations, like State Farm and Farmers, offer this policy. It is called Vacant Home Insurance State Farm. They offer coverage for vacant homes through endorsements or separate policies. Depending upon the client’s preference, they may avail either.
Vacant home insurance coverage is more expensive than a regular homeowner’s policy. You might be asked to pay up to 50% more than what you pay for a regular homeowner’s policy. An average individual pays $1,083 for a homeowner’s policy every year. He or she should expect to pay around $500 extra.
Cost Mitigation Methods
Vacant or Unoccupied property insurance policy is expensive. Yet, you can save your money by some small methods. You can have a neighbor or a friend agree to stop by your vacant house every few days. That way you can argue with your insurance company that your home was not vacant. You can also install security measures, such as fire alarms, in your vacant house. This way you can earn a discount. Insurance provider companies handle these scenarios on a case-by-case basis. There is no general guideline or a set rule for such preventative measures. The discount opportunities are still worth discussing with your insurance provider.
Why Choose SG Financial INC
SG Financial Inc. is a provider of Vacant Home Insurance in Dallas, Texas. We can offer you a reasonably priced policy to cover all your needs. You can ease your mind that your vacant home would be covered for, when you are not there.