If you own a rental property, you want to ensure you're taking steps to protect your investment. This type of insurance is called vacant rental property insurance. It is imperative in the current rental market, where more properties are available.
Vacant rental property insurance provides coverage for your property when it doesn't have any tenants. Vacant or empty properties could happen for various reasons, such as renovations, repairs, or simply because you haven't found a tenant. Without occupants, the property is at higher risk for damage, vandalism, and theft. Additionally, if something goes wrong, there might not be anyone there to notice and report the problem, leading to more significant issues and more expensive repairs.
A vacant property is a property that’s empty and not in use for a significant amount of time. It doesn’t always mean it’s abandoned or boarded up. However, if your property has been vacant for over 30 days, your regular property insurance might not cover any damage or losses. This is because insurance companies view vacant properties as riskier than occupied ones, so they require a separate type of insurance to cover the increased risk. Vacant rental property insurance can cover theft, fire, vandalism, and weather-related damage. It can also provide liability coverage if someone is injured on your property while it's vacant. In a nutshell, it can cover a financial loss due to unexpected damage.
It's important to note that vacant rental property insurance is not included in standard property insurance policies, so you'll need to purchase it separately. At the same time, it might seem like an extra expense, but repairing damage to a vacant property can be much higher than the cost of the insurance policy. The things covered by your insurance and how long they're covered will depend on the insurance company and the policy you choose.
If you need insurance for a vacant home, the first step is to ask your insurance provider about it. Some companies let you add coverage to your existing policy, while others require a whole new policy. Once you talk to your current provider, looking at other options is okay. Don't just think about the monthly cost; also look at other things like how much you have to pay before the insurance kicks in.
Takeaway: If you own a rental property that's currently vacant or will be coming vacant soon, it's essential to consider purchasing vacant rental property insurance. This type of insurance can protect your investment and give you peace of mind knowing you're covered in damage or loss. In addition, vacant home insurance can provide you with peace of mind and help you protect your money if something bad happens while nobody is living there. Since the house is more at risk for theft, vandalism, or damage, this insurance can be helpful. Protecting your property is even more important with the current rental market having more supply than demand.
