For every home that is occupied, there is often a home that is left unoccupied. Whether that is a vacation home, a cabin used seasonally, or even properties left temporarily unoccupied as part of a move or sale, these homes have many of the same property risks that occupied dwellings do, but they also carry their own special set of considerations which owners should be aware of.
The solution to these problems is unoccupied and vacant home insurance, specialty products designed to provide protection (financially speaking) from the loss of or damage to an uninhabited home. Vacant homes pose a larger risk to insurance companies than occupied homes, whose claims are likely to be reported faster and whose potential issues (flooding, fire, damage, etc.) will be dealt with sooner.
When might you need this type of insurance? Well, generally speaking, if you have a property that will be unoccupied for more than 30 days or so, you probably want to have it. Here are some common scenarios:
· Vacation homes that are only utilized a few times throughout the year
· Newly purchased homes that you won’t occupy for a month or more
· Rental properties without tenants
· Property remodeling or renovations
· Long-term travel
· Long-term hospitalization
There are, of course, other situations in which this type of insurance would be useful, but these scenarios are the most common. One important thing to keep in mind is that homeowners’ insurance generally will not cover claims made on unoccupied properties. This is primarily due to those increased risks mentioned above. Those risks have led to unoccupied homes being excluded from standard policies, which has resulted in the need for special insurance.
It is vital that you speak with a professional to determine what considerations you may need to take into account before leaving your home unattended. Further, there are often some restrictions on these policies about the amount of time that the dwellings can be left unattended.
Are you sure you have the adequate protections in place? If not, it’s time to find out. For more information, contact Wayne Nesbit at 952-746-4312.