Vacant property insurance is crucial for protecting properties that are unoccupied for extended periods, safeguarding them against various risks and liabilities. Working with an experienced wholesaler specializing in vacant property can help agencies ensure they’re providing the best insurance options available for their client’s needs.
Vacant property insurance provides specialized protection for unused homes and buildings. Properties often need protection against multiple risks, so it’s important to work with a vacant property insurance wholesaler that has robust options.
In recent years with many employers making a shift to work-from-home workforce, many office real estate owners have needed to temporarily move coverage to a vacant policy when the property becomes less than 31% occupied for more than 30 days. Many admitted markets remove vandalism, sprinkler leakage, water damage, and theft when a building is deemed vacant for more than 60 days.
Properties undergoing renovation or new construction coming off Builders Risk policies may need vacant property coverage for the period of time it is on the market to be sold or leased until occupancy meets underwriting requirements. Homes that are vacated in the process of being sold, renovated, or otherwise not being lived in for more than 30 days may need to consider temporary coverage under a vacant property policy.
With everchanging exposures in the real estate market it’s important to partner with a wholesaler that understands the unique exposures your clients face in order to obtain the best terms to protect your clients.
Almost all of these clients would likely need other insurance coverages too, whether that’s homeowners, general liability, landlord or some other policy.
Vacant property insurance primarily covers the building itself but can include equipment breakdown and other structures as well. Coverage terms can vary from actual cash value (ACV) to replacement cost value (RCV) or functional replacement cost (FRC) valuations. Perils can also vary from Basic to Special form and some carriers can also extend to include general liability.
Because vacant properties can vary in cost, it’s important for agencies to work with a wholesaler who has flexible vacant property markets.
Many types of vacated properties can be covered by vacant property insurance policies:
Offering multiple options for a vacant property policy lets agents help clients obtain the best coverage terms for their exposure.
Most vacant property policies are intended for properties that remain unused for 30 or 60 days. These are two of the major points at which standard policies stop providing protection or at a minimum remove important coverage perils like theft, water damage, vandalism, and sprinkler leakage.
Vacant property policies can be placed on 3, 6, 9, or 12 month terms with options to extend varying by exposure.
Most homeowners policy markets will choose not to extend to a vacant property if it will be vacant for more than 30 days.
Offering vacant property-specific policies as a standalone option helps ensure your client maintains valuable peril protection during the time of vacancy.
To learn more about what Telamon can offer your independent agency, contact us at Telamon Insurance. Our team will work closely with you to find a vacant property insurance program to best fit your client’s needs. .
