Do You Need Insurance on Your Vacant Property? 

Whether it’s a residential home awaiting renters, a commercial building between tenants or an empty lot being prepared for development, owning a vacant property comes with unique risks that many property owners may not anticipate. Just because these buildings or areas might not have current occupants doesn’t mean that you can afford to cut corners regarding risk management. Understanding and maintaining suitable vacant property coverage is key.

Understanding the Risks of Vacant Properties

In many cases, vacant properties may actually be more vulnerable to certain risks and perils than those that are occupied. Without regular activity, issues that might be detected by tenants can go unnoticed and escalate quickly. Common risks include:

• Vandalism and theft—Unoccupied buildings can present tempting and vulnerable targets for criminals.
• Fire and water damage—Relatively small problems, like a leaking pipe or electrical issue, may go unnoticed until significant damage has already occurred.
• Third-party injuries—If someone is injured on your vacant property, even if they were there without permission, you could be held financially responsible.
• Weather-related damage—Illinois weather can be unpredictable, and vacant properties may not be adequately equipped for storms or freezing temperatures.

Why Standard Property Insurance May Not Be Enough

Many standard homeowners, landlord and commercial property insurance policies have exclusions or limitations related to vacancies. If your property is left unoccupied for a certain period, such as at least 30 days, your coverage may be reduced or even voided. That’s why specialized vacant property insurance is essential. This type of policy is designed to address the unique risks associated with unoccupied properties, potentially providing coverage for physical damage, liability and more.

Who Should Consider Vacant Property Insurance?

Specifically, vacant property insurance is an advisable safeguard for the following parties:

• Homeowners selling a property that is currently empty
• Landlords seeking new tenants
• Real estate investors with unoccupied buildings or lots
• Owners of properties undergoing renovations

How We Help Protect Your Investment

If you own a vacant property or expect a lack of occupancy within your portfolio in the future, don’t leave yourself and your investment exposed to unnecessary risks. Contact Price Insurance today to discuss your coverage needs and find suitable coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.