Have an Empty Home? Ask About Vacancy Endorsements
The housing market slump has left many homes empty, as homeowners move
into second homes without selling their first. But, if your summer
cottage or rental properties are vacant, if you move out while
remodeling, or if aging parents have moved into a long-term care
facility, the following information also applies to you.
Though home owner policies vary greatly, they often include a vacancy
clause that limits or revokes coverage if the owner leaves the home
vacant for an extended period (commonly, 30 days). As insurers see
vacant homes on the rise, they also see an increase in theft,
vandalism, water damage, fire, and foreclosures. Empty homes with "For
Sale" signs or with yellow "Vacant" stickers from the post office are
targets for theft and vandalism (copper piping and refrigerators are
popular items). Turn off your water, unplug appliances, and ask your
agent -- a "vacancy endorsement" can sometimes protect you.
Vacant Commercial Building? Talk to Your Agent Before it's Vacated.
Vacant Commercial Buildings: Business owners have similar concerns to home owners (potentially revoked coverage and increased risk). But when it comes to vacant
properties for commercial property owners, the means of protection is much different. Inform your insurance agent that a
property will be vacant well before it happens. Your agent will work with you to find an alternate use for
the property while it is vacant, and then work with your insurance carrier to
keep or adjust your coverage.