What is Vacant Property Insurance?
Vacancy is one of those things that generally does not receive a lot of consideration until something happens. With the mortgage crisis, one hears about many vacant houses. There are also vacant lots that communities take over to grow gardens or establish as playgrounds for the local residents.
While at first glance whether a property is vacant would seem to be obvious, it is unfortunately not nearly as easy to determine as one would hope. In homeowners’ and dwelling forms, damage to a property caused by vandalism or burglary is excluded if the property has been vacant for more than 60 consecutive days immediately before the loss. It bears mention that some older forms use 30 days, so be sure to check your specific policy language.
Vacancy is not a defined term in the policy. Therefore, as per court practices, a standard desk reference is used to determine the meaning of the word. According to Merriam Webster Online, vacant is “when something is without content or occupant.” Note the fact that the property must be without content. A dwelling with furniture but no occupant is not considered vacant; it is unoccupied. This is a big difference.
Typical Vacant property Insurance Coverages
Finding insurance for your vacant property can be challenging, mostly because a typical homeowners policy probably won’t cover the property after it’s vacated.
Named Peril Coverage
We cover "perils" (things like fire, explosion, lightning, wind and hail) that are specifically named in your policy, subject to exclusions and conditions.
Vandalism & Malicious Mischief Coverage
You won’t find this type of coverage on vacant homes with many other insurance providers, but Farmers does offer optional coverage for acts of vandalism and mischief.
Full 12 Month Policy
We offer flexible payment plans and a pro-rated cancellation, subject to minimum earned premium. This comes in handy in case you move back into the home, sell it, find a tenant, or need to cancel for some other reason before your year is up.
Optional Liability provides coverage if you're found legally responsible for an accident on the vacant premises, that causes injury to someone or causes property damage.
Agreed Loss Settlement (Total Loss)
If your vacant home is destroyed by a covered loss (a total loss situation), you receive the full amount of insurance you purchased on your home, minus any applicable deductible.
Actual Cash Value (Partial Loss)
In the event of a covered loss (a partial loss or partial damage), this covers the cost to replace or repair your damaged property, with a deduction for depreciation, which reflects the age and condition of your home, minus any applicable deductible.
If you rent your property, and it goes vacant between tenants, you can cover it with a Farmers Vacant Home policy. When someone moves in, we can easily endorse it to a Landlord or Owner-occupied policy, all without having to cancel the policy or write a new one. (not available in all states)
1051 County Line Rd
Huntingdon Valley, PA 19006
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