There are times in life where you might end up with a vacant property. For example tenants move out, owners vacate their property early during the sale of their home, or an estate become vacant after an owner passes away.
When a property is vacant there are many threats that can cause damage to the property. For example unforeseen claims can arise from theft, vandalism, fires, slip and falls and water damage.
The word vacant or vacancy refers to the circumstances where, regardless of the presence of furnishings, all occupants have moved out with no intention of returning, or in the case of a newly constructed dwelling, no occupant has yet taken up residence.
What are your responsibilities when your property becomes vacant?
1) Notify your insurance company immediately. Every insurance company has an underwriting exclusion related to not providing coverage to a dwelling that has been vacant for more than 30 consecutive days.
2) Notify your insurance company if the vacancy will be in excess of 30 days. A vacancy permit will be required. Usually an insurance company will charge a small fee while the dwelling is vacant. The fee is usually a flat charge for every 30 days the dwelling is vacant.
a. The insurance company will request that a Vacancy Questionnaire be completed by the insured. It is usually a 1 page questionnaire asking about length of vacancy, precaution measures taken by the owner.
3) The owner must take safety precautions to avoid future claims. For example:
a. The water in the dwelling must be turned off unless the water is required for hot water heating systems.
b. Drain hot and cold supply lines and toilet tanks must be drained.
c. Disconnect and unplug all appliances in the dwelling.
d. Have a person check on the dwelling regularly and set up an automatic timer for the interior lights.
e. Consider installing a monitored alarm system and sensors for break ins, flooding and fire.
f. Have the locks changed to prevent old tenants in.
g. Continue routine maintenance such as mowing the lawn, collecting newspapers, remove snow, add salt
h. During the heat season add non toxic anti freeze to the plumbing system to prevent frozen and cracked pipes
A vacant property dramatically increases the chances of a claim with your insurance company. It is very important
to notify your insurance company immediately and take the safety precautions outlined in this blog. If you need help with attaining insurance for a vacant dwelling please call us at 1-877-941-2266 now and we will be able to help get you insurance.
