Vacant House

How Vacant Property Affect My Policy

Define vacant property lacks sufficient furniture for an individual to reasonably occupy. Void of presonal items and people. The occupant has moved or no longer there. An indication would be the sparse furnishings, lack of daily conveniences and proper appliances causing very uncomfortable living conditions.

Unoccupied Defined

Unoccupied when property voids people. There can be furniture but lacks people. Neither occupant or doing construction.

Insurance companies will not continue coverage

When a property continues to lie vacant for more than a reasonable period of time 60 consecutive days, the insurer will be less likely to continue with the coverage.

There are few insurers willing to provide cover for a vacant home.

They would either be non-renewed or cancelled for this reason. There are two options available for policyholders in this case:


Get limited coverage at a reasonable premium

Get coverage similar to the homeowner’s policy but with a higher premium.

If a home has been vacant for more than the stipulated time frame and an issue of vandalism or break-ins were to occur, then the policy will not cover..

Vacancy Timelines of Coverages

Below are some timelines of your coverages diminishing after 30 to 60 days of vacant / unoccupied property;

  • After 30 days Vandalism removed
  • After 60 days Fire damage removed
  • Then Freezing of plumbing, heating or air conditioning system and
  • Or Water System shut off or drained


Vacancy How Affect Commerical Insurance Coverages

If commercial property lies vacant / unoccupied for more than 60  consecutive days or 2 months. the building less than 31% of square footage occupied. Under a standard policy:

  • No coverage for vandalism
  • Sprinkler leakage
  • Water Damage
  • Theft or Attempted Theft
  • Reduce coverage by 15%

How to Reduce the Risk Tied to A Vacant Property

In a situation where you find yourself lucky enough to keep your rental property fully insured and at the same time avoid vacancy penalties, there are still risks attached to the home for being unoccupied. There are ways to reduce the chances of suffering major property damage or loss from incidents such as burglaries and perils.:

  • Install an alarm system to monitor and alert in the case of a break-in
  • Get Temperature sensors to monitor temperature changes in the home and guard against frozen pipes, fire etc.
  • Rent out property before vacancy clause expire


Further Advice on Vacancy

If you have a vacant / unoccupied claim and need assistance or professional advice contact Bi-State Public Adjusters for No Obligation Claim Consultation and policy review.

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