Let's face it. Real estate investing has a lot of moving parts, no pun intended. The only constant is change. Your investment may look very different from the investments of others, so a one-size-fits-all solution to landlord Insurance rarely applies even though the risk still does. Another variable in the income property equation gets introduced when an investment property sits vacant. Given the actual or potential volatility associated with renting and maintaining property rentals, at some point as the property owner, you may come across the question, "Do I need vacant structure insurance?"
Who Needs to Buy?
Basically, anyone looking to protect an unoccupied/vacant property from vandalism and weather-related damage. Business investors, landlords, commercial and residential property owners, anyone who has a stake in a property for lease/rental income should strongly consider buying vacant structure insurance if they expect their property to sit unoccupied or vacant. Insurance carriers usually view a property as vacant if it sits unoccupied without utilities, appliances between 30 to 60 consecutive days. Have you purchased a property you expect will fit this profile at some point?
Why Do They Buy?
Vacant structure insurance finds a market because a vacant property is exposed to more risk. Vandalism, fire, weather-related perils are just a few reasons to protect your structure when it is left unattended for a lengthy period of time. Whether an investor owns one rental property or several, they run the risk of having one fit the unoccupied/vacant criteria due to move-outs, evictions, renovations. Savvy investors remember they are in a state of flux with their properties and prepare to protect with the right coverage at the right time. Do you expect the unexpected while making sure you have a plan in place to cover your asset for times of vacancy?
Where Do They Buy?
Many insurance carriers know the risks associated with property investment and offer vacant structure insurance either as an endorsement on an existing policy or by issuing a new policy. They price the insurance in relation to the risk, usually meaning the premium will exceed the amount of regular home or landlord insurance. Policies from carriers should allow for convertibility, meaning once the property is no longer vacant or unoccupied, the policy can switch back to coverage and costs related to an occupied dwelling. When pricing a policy, carriers will most likely take into account the condition and neighborhood of the property, reason for and length of time of vacancy, and possible discounts related to a security system or holding an existing policy. In most cases, you can apply for vacant structure insurance the same way you do for home insurance, in-person or online.
Again, your investment portfolio may look a lot different from the next investor. Be certain you have your questions answered when it comes to guarding your income property. Insurance For Texans is an independent insurance brokerage with access to a variety of carriers who provide vacant structure coverage solutions. We want to hear from you. We want to learn about your property investments and partner with you to protect them.
Give us a call, email, or text and we'll help you keep that vacant structure covered against liability while you keep occupied with adding revenue.
