Properties that remain unoccupied face risks from various activities such as burglary, vandalism, fire, or natural disasters. Without proper protection, these empty properties will soon become more of a financial burden. For this reason, becomes essential for these homeowners. Whenever properties are Unoccupied Property Insurance Policies be it transition from one tenant to another, undergoing renovation or holding a second home- letting your property run the risk will be an unwise option.
This blog will take you through the top unoccupied property insurance policies in the U.S. and how you can choose one to meet your needs.
What is Unoccupied Property Insurance ?
Unoccupied property insurance is an insurance policy for homes or buildings that are not occupied either by tenants or the homeowners. Most standard homeowners insurance does not provide coverage for vacant properties, exposing the owners to various risks. And this is where unoccupied property insurance comes into play: It protects against damage, theft, vandalism, and other hazards while the property stands vacant.
Similar to conventional homeowners insurance that generally covers properties in recent occupations, the unoccupied property insurance policies specify the cases of their applicability regarding compromising the status of a property into emptiness for substantially prolonged periods. Such cases include:
- Home renovations or repairs
- Selling or waiting for new tenants
- Seasonal vacations
- Relocation or moving to a new property
Why Do You Need Unoccupied Property Insurance ?
There are increased chances of a risk being applied to any unoccupied property. Examples of this include:
1.Vandalism and Theft: Vacant homes are more vulnerable to break-ins, theft, and vandalism. Without insurance, it may leave homeowners in great difficulty, dragging their pockets into heavy repair costs.
2.Natural Disasters: Damage due to natural disasters such as storms, floods, or fires can happen to unoccupied homes. When these events happen, the standard home insurance policy may exclude coverage of damages to such vacant properties.
3.Accidental Damage: Some major damages can occur due to leaks, electrical problems, or accidents on an empty home. If that home is unoccupied for months, one may not notice until only full-blown damage is done.
By taking a comprehensive unoccupied property insurance plan, you protect your property even if you are not living in it.
Top Unoccupied Property Insurance Policies in the U.S. :
Below are some of the best companies in the United States that provide unoccupied property insurance. Since each of these providers has different policies, it will be good to compare them for the right coverage that meets your needs.
- State Farm :
State Farm is among the major insurance providers across the U.S. to put a face to unoccupied property insurance. Their unoccupied property insurance can be tailored to quite a few scenarios such as:
- Vandalism and theft
- Fire and water damage
- Liability for accidents on site
- Lost rental income (in cases where the property was intended to be rented)
Advantages: Known for great customer service and vast coverage options, State Farm represents one of the best choices for homeowners seeking effective protection of their vacant properties.
- Allstate :
The vacant home insurance provided by Allstate is flexible and customizable. Their unoccupied property insurance policies are designed to protect homes during periods of vacancy, with coverage for:
- Damage occurring from fire, lightning, or smoke
- Theft and vandalism done to one’s property
- Liability related to accidents occurring on the premises
- Weather-related damage, depending on location
Allstate’s policies can be tailored to the vacancy duration, allowing for more affordable premiums with short-term vacancies.
Pros: They offer generous discounts when bundling policies, and their extensive network of agents will give you personalized assistance whenever needed.
- Farmers Insurance :
The Farmers Insurance company provides unoccupied property insurance for homes that are vacant for 30 days or longer. Their vacant home insurance policies cover:
- Fire, wind, and hail damage
- Vandalism and malicious mischief
- Damage inflicted by burst pipes, leaks, and other accidents
- The corresponding liability protection for injury on the property
If you want to add protection to your property but do not want to buy an extra policy, Farmers will offer a vacancy endorsement that could be included on an existing homeowners’ insurance policy.
Pros: Farmers offers short-term and long-term insurance plans, while their client service is rated above average.
- Lemonade Insurance :
Lemonade operates as an online insurer, making it affordable to obtain unoccupied property insurance. Through Lemonade, homeowners can purchase coverage for unoccupied properties directly from the app or website. Such coverage includes:
- Theft or vandalism
- Fire and vandalism
- Liability protection
- Accidental liability
Pros: Lemonade is a modern, tech-driven insurance provider based on the principle of transparency, and they provide a simple and fast claims process. Their pricing is very competitive, especially if it is for short-term vacancy.
- Liberty Mutual :
Starting with the vacant home insurance policy for homeowners, temporarily leaving their property unoccupied, the insurance policy can be tailored. Coverage includes protection for:
- Fire, vandalism, and theft
- Water damage due to plumbing problems
- Wind, hail, and storm-related damage
- Liability from accidents on the premises
Liberty Mutual provides discounts for the purchase of auto and other types of insurance policies at the same time.
Pros: Liberty Mutual allows flexible payment options, which allows easy modification of insurance policies whenever your property changes status.
Choosing the Right Unoccupied Property Insurance Policy
The main things to keep in mind when hunting for unoccupied property insurance for your needs are:
- Length of Vacancy: Short-term policies are meant for vacant properties for a few months, while some policies are meant for long-term absentees-from-six-months-or-more situations. Pick a policy that is aligned to the duration your property will be unoccupied.
- Coverage Type: Check that the policy covers risks likely to affect your unoccupied property because some leave out others-burst pipe, vandalism, and theft take on the most destruction, fire entry, and many natural disasters. Be careful of exclusions, where some have particular ones: they do the policy reading with fine print.
- Price: Vacant properties incur much cost when insured. Occupied houses cost smaller premiums because they have greater risks. Hence, compare quotations, and you will get affordable rates.
- Liability Protection: In the event that somebody goes into your property without your permission and sustains an injury, liability protection will be vital. Make sure this coverage is included in your policy so you won’t be financially responsible.
- Flexibility: In case your property status changes, find a policy that allows you to make changes in the coverage offered. Some companies allow you to change vacant property insurance to standard home insurance once the property is occupied.
Conclusion :
It is also important in protecting a vacant property by adequately insuring it with unoccupied property insurance that can touch on theft, damage, and liability. Since the number of reputable insurers that provide unoccupied property insurance is growing by the day, you can now shelter your property, whether it is just temporarily or unoccupied for quite some time.
Don’t let an event happen before you take action, compare policies, assess your needs, and ensure you have the right coverage such that you can rest assured your unoccupied property is covered. Quote requests from top providers will enable you to find out how you can get started today with the best unoccupied property insurance for your situation.
