A Brief Guide To Rental Property Vacancies And Insurance Requirements

Second homes that are leased to tenants require further insurance than the homeowner's insurance policy to ensure maximum coverage. This begins with a commercial property package, dwelling fire protection, and the requirement for all tenants to maintain renter's insurance. However, strict stipulations apply when the structure becomes vacant. Insurance carriers provide owners a thirty-to-sixty-day window to fill the vacancy. If the property is not rented in this time frame, the homeowner's insurance is canceled. This is when the owner needs to purchase a vacant home insurance for the property.

When Vacancy is not Temporary

In a slow economy, there's a probability that a rental property could go unoccupied for up to a year. During this time, a homeowner's insurance policy is not attainable. Any failure to notify the insurance carrier or the vacancy nullifies all coverage for the property. This opens them up to the possibility of a total loss if damage is sustained and holds them accountable for all liabilities.

What You Should Know

Insurers consider rental property as a business venture. This implies that the property owner is required to perform maintenance and repairs as needed. vacant house insurance vacant property insurance doesn't cover damage sustained due to occurrences that could have been avoided through these requirements. This means that if water damage is sustained due to a water pipe bursting as a result of a failure on the owner's part coverage is not provided.



Theft of property is not included in vacant building insurance for rental property. For this reason, security measures are necessary. The installation of a security system allows the provider to notify the police if a break-in happens. They should install deadbolts and ensure that all windows and doors are locked adequately. If the owner took these precautionary measures, the coverage is afforded to them through their policy. Furthermore, fire alarms and features need to be installed inside the structure that notifies emergency services promptly.

Exceptions to the Rule

Homeowners who have vacant rental properties may allow a family member or individual they trust lives in the property during vacancies. This eliminates the need for further insurance. It also places someone on the scene if a crime such as vandalism occurs. However, the owner must discuss these options with their carrier to ensure that they are covered properly.

Rental home owners should purchase vacant property insurance if the structure is empty beyond sixty days. They must notify their carrier if they wish to rent out the property, and at any time it is unoccupied. Precautionary measures are necessary and may allow the owner more protection if outlined in the terms of their policy. If you wish to acquire this supplemental insurance for your property, submit a request for a free quote.