You always know it’s springtime in Denton, Texas for a variety of reasons. The trees, allergies and warm weather are physical signs of spring, but there’s another tell-tale sign of springtime in Denton; a mass-exodus of college students leaving our fair city. Each spring and into the summer, Denton quiets down for a spell as college students head back to their respective hometowns. While a nice change of pace, this also means an influx in vacant properties. While homeowner’s insurance protects these properties, did you know there’s an additional coverage called Vacant or Unoccupied Home Insurance Coverage?
Vacant Property Insurance is different from your traditional homeowner’s insurance. There are many scenarios in which vacant property insurance would be needed:
- Owning rental property and are between tenants
- Moved for a new job but your home is unsold
- Property is undergoing renovations
- As executor, you are selling a house to close an estate
- Medical treatment/extended recovery from an accident
- Extended traveling
When a home becomes vacant, a standard homeowner’s policy may give the insurer the right to cancel mid-term, lower coverage levels, or even deny a claim. Keeping this in mind is paramount as you think about protecting yourself and your assets. Additionally, it is difficult to find homeowner’s coverage for a property after it’s been vacated.
So, why do you need vacant property insurance? Well, for one, the risk is greater with a vacant home because the home is more susceptible to vandalism, liability, and fire. You also have to worry about intruders harming themselves on broken floor boards or fencing and filing a claim against you. It might sound far-fetched, but it has happened. Acquiring vacant property insurance is yet another way you can protect yourself and your property in the event of an absence.
Determining the amount coverage you would need depends on a several factors. Most importantly, always insure for the replacement cost value if you can. The longer the home is vacant, the greater the risk that it might be vandalized or experience damage due to no one being there to monitor the home. Having vacant property insurance will typically cover physical damage to the home, including weather damage and vandalism. Please note, if there are detached structures on the property, you might consider adding additional vacant property coverage for these structures.
The cost of vacant property insurance is sometimes more expensive than a standard homeowner’s policy. Some factors that can affect the premium relate to geographic location of the property, the home’s value and the amount of coverage you purchase and the safety of the home. It’s a small price to pay for peace of mind and security surrounding your property.
As always, here at Ramey King, we’d love the opportunity to sit down and discuss this type of special coverage today. Feel free to reach out to any of our agents with questions!