Do you have a home that has sit vacant for awhile? A piece of vacant land you have yet to sell? Read on to learn whether or not you should consider vacant land or vacant home insurance and what your options are.
What is Unoccupied and Vacant Home Insurance?
This type of insurance provides financial protection from damage or loss on a home that is uninhabited. If you’ve had to move and haven’t been able to sell your home, a typical homeowners insurance won’t cover everything you might want on an empty house. For example, vacant home insurance can cover fire, vandalism and liability on an uninhabited home. You can either purchase this type of insurance product as a separate policy or as an endorsement. If you purchase it as a separate policy you won’t have to continue to pay for a standard homeowners, while an endorsement works as an add-on to your current homeowners policy.
Keep in mind that unoccupied homes pose a greater insurance risk — problems like fire and vandalism aren’t noticed nearly as quickly if the home isn’t occupied, leading to more extensive damage.
Should I Get Vacant Home Insurance?
If your unoccupied home has been on the market for more than 30 days with no sign of selling in the near future then you can contact your insurance agency to determine if you qualify for unoccupied home insurance. Terms can vary by policy and your insurance company may have specific restrictions about how long your home can be vacant and covered by this type of policy. In most situations your home would qualify for vacant home insurance (meaning the home is clear of all your belongings) while unoccupied home insurance generally applies to situations where the home is simply not being currently lived in but still contains furniture and utilities are set up.
If you decide to purchase this type of insurance, contact your home insurance company and be prepared to pay around 50% more for your vacant home insurance compared to a regular homeowners policy.
Other Options to Purchasing Vacant Home or Vacant Lot Insurance
If paying extra insurance for your empty lot or empty home is prohibitive you could reach out to a neighbor or friend and have them check on your property every few days. Another option is to install an alarm system to help protect your vacant property. Some insurance companies will offer a discount on your vacant home insurance if you’ve set up an alarm system so check with your insurance provider to see if that is a possibility in your case.
What is Vacant Land Insurance?
Vacant land poses less of a liability than a vacant house, right? Well, yes and no. If you have no way to prevent strangers from trespassing your empty lot can be a liability. Legally a trespasser could sue and win for any injuries or accidents that occur on your property. Vacant land insurance provides a liability form of insurance so you are protected if anyone gets hurt on your property, covering both the medical costs and any legal fees. This type of insurance doesn’t protect the land itself, but is purely liability protection for you.
Should I Get Vacant Land Insurance?
Unlike vacant home insurance, vacant land insurance is not expensive to purchase. A large policy covering $1-$2 million dollars will cost less than $100 a month. This is just an average; the actual cost is determined by several things including the amount of protection you want, how much land you have, what your land is used for and any known dangers on the property (like an uncovered well or drainage ditch).
While you are not required by law to get vacant land insurance, if you can afford the monthly fee this type of insurance is a good protection from litigation or medical expenses. If your property is visited for hunting, fishing or four-wheeling it is a good idea to be prepared and plan for the worst case scenario.
If you are considering vacant land insurance, contact your homeowners insurance company or any major insurance provider to get a quote. The insurance company may require an inspection of the property to verify for coverage and you could possibly get the insurance as an add-on to your current homeowners policy.
Sell Your Home Fast Instead of Paying for Vacant Insurance
If you have found yourself in a situation where you have an empty house or lot that just isn’t selling quickly, know that you do have other options. Selling your home to a house buying company like us at GaryBuysHouses allows you to save time, money and stress helping you to still make money off your house that is sitting empty with the potential for vandalism and other issues that can pop up in unsupervised homes and land. Gary is ready to make a fast and fair cash offer for your home or land and is willing to take on properties in any condition. If you are interested in selling your property to Gary then reach out today and have a closing date in as little as 7 days.
Gary does not sell your contract, require inspections or extensive negotiations. He specializes in hassle-free closings and cash offers. If there is no mortgage on the property then Gary could even close in as little as 1 to 2 days.
Working with Gary means getting a check that you can cash right away the day that you meet up about the property. He is serious and motivated to purchase your home and if for any reason Gary doesn’t buy the house, even if it’s your fault, you get to keep the earnest money. Contact Gary about purchasing your property and don’t let it become just another expensive, vacant property.