Vacant Property Insurance
Vacant Property Insurance Quotes
Even vacant property insurance companies cannot agree on the definition of vacant
30+ days without being occupied can be considered vacant. Some insurers also consider whether belongings are in the house or utilities like electric remain active. Make sure you know the criteria your insurance provider uses to define vacant otherwise your property may not be covered by your homeowner’s insurance.
Insuremart’s agents know the best vacant property insurance companies and can help you evaluate coverage and terms. Not only that, but our access and rates make Insuremart a good choice:
Insuremart has direct access to
over
100
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Nobody can sell for less, and we work for you.
Vacant homes are more difficult and expensive to insure. That’s why people contact Insuremart for help.
What does vacant property insurance cover?
Insurance for a vacant home will cover the general perils of fire, lightning, wind, hail, explosion, and smoke damage.
Important: A must know about vacant property insurance:
Standard vacant property insurance will pay actual cash value (ACV), not replacement cost value (RCV). ACV means depreciation will be factored in to determine value, and labor will not be included. Talk to our agents about replacement cost value. It will increase your premium, but the benefits are worth considering.
Simple example:
A fire destroys your 30-year-old vacant home:
Actual Cash Value: when factoring in age and condition of the home and its materials prior to the fire, an insurance company may offer $75,000, less your deductible. That’s what the insurance company would give you. The cost of labor to rebuild is not included because labor is not part of the home’s actual cash value. Now compare that to Replace Cost Value:
Replacement Cost Value (or cost to replace) the home: The insurance may give you $250,000, less your deductible. That’s what the insurance company would give you to replace your home. It factors in the cost of labor and materials to rebuild your home to today’s standards using comparable materials as the original home used.
Vacant property coverage is more difficult to obtain because the risk is higher and less companies are willing to take on that risk. Squatters is another topic you should discuss with our agents.
How much does vacant property insurance cost? What limits to expect? What about deductibles?
The number of variables to determine cost are too great to provide accurate numbers, but here is some general info on cost:
Average: 40-60% higher than typical homeowners insurance in the area
Good to know: Insuremart works with over 100 insurance carriers. Nothing gives you an advantage when buying Vacant Property insurance — or any insurance — like a great agent and more options. Talk to our agents.
Regarding limits, the dwelling limit will be the ACV (Actual Cash Value). Remember, you can ask our agents for quotes that offer Replacement Cost Value. They have a huge market to shop for you.
If other structures, e.g. sheds and detached garages, are included in your vacant property policy, they will typically carry a limit based on 10% of the dwelling ACV or RCV.
With respect to deductibles, 1,000-$2,000 or 1-2% of the value of the covered peril will be your responsibility. Percentages are more often used for higher-value structures. Each insurance company determines what deductibles to offer.
What add-on coverages are available for a vacant home?
You can modify your coverage to fit the house and your budget. Sometimes add-ons cost little but offer great value.
Vandalism & Malicious Mischief: Consider this coverage if the vacant home is in a high-crime area or maybe doesn’t have neighbors close by.
Theft: Like the previous add-on, you need to decide what risks are relevant.
Water Damage: Imagine a water leak or burst pipe (especially in freezing climates). Without coverage, a leak could ruin the structure without insurance to cover it.
Liability: This protects you against injuries to others on your property. And yes, you can be held liable even if the person or people are trespassing. Squatters, vandals, and bored kids come to mind.
Other Structures: Coverage for structures like detached garages, sheds, and fences.
Named Peril Coverage: You can name additional perils you want covered, like falling objects or weight of ice and snow on the roof.
Some insurers may offer other specialized add-ons, such as coverage for broken glass, debris removal, or even protection against squatters. Nobody wants problems, but having insurance when problems occur is always welcome.
Get a Vacant Property insurance quote from Insuremart right now. Our agents are ready to help.