Vacant property insurance is a policy some may need to insure an abandoned property to prevent liability. Ultimately, owning a residential property comes with plenty of responsibilities, one of which is ensuring its safety and security. But what happens when it’s left vacant for an extended period? Subsequently, it is where vacant property insurance comes in.
Vacant property insurance is a specialized home insurance coverage for uninhabited or vacant properties. Furthermore, this type of insurance safeguards homeowners from potential financial losses resulting from unexpected damages that may occur while they are away for an extended period or if the property is undergoing renovations or awaiting new tenants.
What Are the Differences Between Homeowners Insurance and Vacant Home Insurance?
Homeowners’ insurance does not typically cover vacant properties. Ultimately, this occurs due to the presence of vacancy clauses, which limit or exclude coverage for properties that no one has resided in for a particular time, usually thirty to sixty days. Insurance companies are reluctant to offer coverage for vacant homes because they are more susceptible to theft, vandalism, and other damages, which can increase their risk profile and premiums.
What Are the Dangers of an Uninhabited House?
Vacant properties are a magnet for criminal activity, and the range of crimes can be extensive. Significantly, there are a few dangers that can spring up.
Theft and Vandalism
Unwanted graffiti, attempted break-ins, and thefts like metal theft are just a few examples of the nefarious activities that can occur in uninhabited properties. Furthermore, this affects both vacant homes and business properties. An abandoned house and abandoned business both face dangers due to theft and vandalism. Likewise, it’s not uncommon for criminals to boldly commit their crimes in broad daylight, with some thieves even donning yellow high-visibility jackets to avoid suspicion.
Flooding, Water Ingress, and Bursting of Pipe
Escape of water or flood damage is a prevalent type of domestic property damage claim. When a property is temporarily vacant, water escape or flooding damage can be exceptionally significant if left unchecked and unattended for several days or weeks.
Pest Infestation
Pest infestations are a common danger associated with uninhabited houses. A vacant property can provide a haven for rodents, insects, and termites, which can cause significant damage to the property’s structure. Rodents such as rats and mice are particularly problematic, as they gnaw on electrical wiring and other fixtures, leading to potential fire hazards. They can also carry diseases, posing health risks to anyone entering the property.
Squatting
Squatting can have various negative impacts on the property and its owners. Firstly, squatters can cause damage to the fixtures, fittings, and other valuable items inside the property. It could be pricey. Moreover, their presence can attract criminal activities, such as drug use and dealing, making the area unsafe and undesirable for prospective homeowners.
In addition, informal settlers can also make it difficult for property owners to sell or rent their property. Potential buyers or renters may need more time to invest in or rent a property with a history of squatters, leading to decreased property value and prolonged periods of vacancy.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039
