Vacant property insurance is crucial for protecting properties that are unoccupied for extended periods, safeguarding them against various risks and liabilities. Working with a vacant property insurance wholesaler can help agencies market to clients who have these properties — and often other properties, too.
Vacant property insurance provides specialized protection for unused homes and buildings. Properties often need protection against multiple risks, so it’s important to work with a vacant property insurance wholesaler that has robust options.
Anyone who owns unoccupied property could need vacant property coverage. Snowbirds, people with vacation homes, and landlords with unoccupied properties commonly get coverage. So too might investors and businesses with currently unused properties.
Almost all of these clients would likely need other insurance coverages too, whether that’s homeowners, general liability, landlord or some other policy.
Vacant property insurance primarily covers the improvements on an unoccupied property. This is most often a house, but could extend to secondary structures or other buildings. Coverage for contents might be included in some policies, but is far from universal.
For covered improvements, policies are often named perils policies that protect against theft, vandalism, fire, explosion, wind, hail and lightning. Exact covered perils can vary, and some policies offer open perils protection.
Because vacant properties can be quite expensive, it’s important for agencies to work with a wholesaler who has flexible vacant property policies. Many clients might want more than only the basic perils covered.
Many types of properties can be covered by vacant property insurance policies. An insurance wholesaler could have properties for:
Offering multiple options from a vacant property policy wholesaler lets agents help clients insure a wide variety of other properties. This can be helpful when trying to attract clients other than homeowners, or when marketing to the most affluent homeowners who might also have non-residential properties.
Most vacant property policies are intended for properties that remain unused for 30 or 60 days. These are two of the major points at which standard homeowners policies stop providing protection.
Vacant property policies can last as long as 6 or 12 months. Beyond 12 months, a policy usually must be renewed.
Vacant property coverage might be available through standard homeowners policies that agencies already offer. Endorsements added to homeowners policies tend to only provide predetermined coverage, and only for the insured home.
Offering vacant property-specific policies as a standalone option gives clients more flexibility. They can get coverage for buildings other than just a home, and typically have more flexible options regardless of what property is being covered.
Most people getting vacant property coverage also need homeowners insurance and auto insurance. Since these tend to be more affluent individuals, they may also want luxury home insurance, classic car insurance, boat insurance, RV insurance, umbrella insurance and similar protections.