Vacant Property Insurance: Top Exposures When Rental Structures are Unoccupied

Structures can be vacant for any number of reasons, including renovations, between tenant transitions or changes in ownership. However, when a commercial or residential structure is temporarily vacant, the owner's risk of loss due to vandalism, water damage, theft, and other events increases. Insurance agents need to help clients understand the exposures that face these structures and how to protect against losses.

When the structure is not managed onsite, losses can come in many forms, including:

• Weather damage: These types of losses may initially go unnoticed, which could compound losses.
• Theft and vandalism: Without someone on the premises to deter criminal activity, vacant rental units may also become a target for vandals, unlawful tenants or thieves who want to strip the property of its valuables or simply cause damage.
• Water Damage: This can include, among other exposures, flooding from natural disasters or pipe breakage.
• Fires: Fifty-three percent of vacant building fires spread to involve the entire building, and an additional 11 percent spread to adjacent properties, according to the Vacant Residential Building Fires study done by the U.S. Fire Administration.
• Damages from lack of maintenance: Lack of proper maintenance can cause many building defects including roof damage, freezing of fire protection equipment, clogged gutters, caulk seam cracks, mold, and many more preventable damages.

Vacant structure insurance is designed to provide protection for property owners when the property is vacant. It can also protect clients who buy and renovate a property, as well as clients who are in the process of selling a property but no longer live in on the premises.

Landlords who own more than one piece of rental property can also include multiple properties on the same policy, as long as they are all in the same state, require the same occupancy coverage, and if each property would otherwise be insurable on its own.

When you have clients who own vacant residential rental property, helping them understand the benefits of vacant property insurance will help you strengthen the relationship and protect your clients against unforeseen losses.

Choose a provider who understands the exposures that accompany vacant rental structures, and has the expertise to address those risks. To learn more about vacant structure insurance offered through US Assure, download 10 Items to Consider Before Quoting Vacant and Rental Structure Insurance.

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