Although owning a vacant property means that you can access a source of financial income if you set it up for renting or selling it, it also comes with its own set of difficulties and challenges that you will have to face. For example, your property may be subject to vandalism. This can seriously hurt the aesthetics of the property as it can be expensive to fix the issue! Vacant properties are also at risk of other issues like pipe leaks or electrical fires—all of which put your investment in peril.
Put simply, a vacant property is subject to all sorts of trouble that can be incredibly stressful on your end. For that reason, you must insure your vacant property to protect your money and sanity! However, not just any type of insurance will do for this type of property, as the specifics required for it are more unique than your standard properties.
To prevent you from making any mistakes with your investment, here are the common vacant property insurance mistakes that you must avoid:
1. Not knowing what certain terms mean
Do you know what the word “vacant” means? It means an entirely empty property. This means there are no items or belongings in it, and this includes furniture, appliances, and such! If you do have any items in there, but no one lives in there, then the property cannot be considered vacant. Rather, it is considered unoccupied—meaning it is ready to have someone stay but currently has none!
Knowing what these specific terms mean can help you pick the right insurance and ensure that the insurance applies to the property you have.
2. Picking the wrong type of insurance
Not all insurance types are going to cover a vacant property. For instance, do not expect standard homeowner insurance to share the same benefits as a vacant property insurance policy. In fact, the former insurance policy will have exclusions on losses for your vacant property!
As such, looking for a special vacant property insurance policy is vital, which you can generally get as a separate policy or as an endorsement. Just take the time to compare the various policies still to get the best deals.
3. Not managing your risks
While having an insurance policy is good to protect your money, this does not mean you should not make any other investment to reduce the need to use the policy. This includes setting up a multi-function alarm system, finding a janitor to care for the property, running plumbing inspections once in a while, and other such maintenance procedures. These efforts will reduce the risk of expensive issues from occurring, and also helps you to save money in the long run!
An insurance policy should only be used as a last resort, and you must put your effort into preventing problems from occurring in the first place.
Conclusion
If you have yet to get an insurance policy for your vacant property, then do so right away. Anything can happen now and in the future, and the last thing you want to happen is to be caught with an expensive issue that could have been paid for with a policy. That being said, do reach out to a trustworthy and professional insurance provider for the policy. This will ensure you get the best deal possible to work in your favor to maximize and protect your investment.
Quesurance is an insurance agency offering various insurance policies to protect clients within Hopatcong and other surrounding New Jersey communities. If you are looking for a vacant property insurance quote in the US, contact us today!
