Where can a Landlord find Dwelling Fire Insurance Coverage on a Vacant Property?

​ If you're a landlord and have had one of your rental properties remain vacant longer than two months, you understand the frustration and aggravation it can be trying to find dwelling fire insurance coverage on that property. Most insurance companies will not insure a property that's been vacant longer than two months. However, there are companies that will work with you as long as your property can pass a few minimum requirements. Hopefully, this article will help you solve your problem.


 This article will give you an overview of the vacant rental property program to see if your property qualifies, and to see if it's a policy that fits your needs. I will break this down in 4 steps:
1. Requirements to be eligible for coverage.
2. Which type of vacant properties are acceptible.
3. Which type of vacant properties are not acceptible.
4. Overview of the policy and additional coverage options and features..


1. Requirements to be eligible for coverage.


To be eligible for this type of policy and coverage, there are only four major requirements: 


1. Buildings must only house 4 families or less.


2. Must be vacant less than two years. 


3. Has not been without insurance company longer than one year.


4. Property must basic secured completely with the intent to sell rent or occupy the property within the next two years.


Condition requirements: at minimum the property must be in marginal condition and exhibit at least minimal maintenance on both the dwelling and the grounds.


2. Vacant properties that are acceptable.

• A property of any age is accepted.
• A named insured can be listed as an LLC.
• Manufactured homes are also acceptable.
• Properties with up to five paid losses within the past five years can be accepted.

3. Vacant properties that are not acceptable.

• Buildings that house more than 4 families.
• Buildings with unrepaired damage.
• Land trust listed as the named insured.
• Property management company listed as named insured (unless also listed on the deed).

*Note*: Properties with a pool or pond on premises are ok, but liability coverage will not be offered.


4. Policy overview and additional options and features.

• These policies are covered on a named peril basis. They offer agreed loss coverage in the event of a total loss and actual cash value coverage in the event of a partial loss.
• The best thing about these types of policies are the flexibility that they offer. These policies are structured as a "build your own policy". Meaning that you pick and choose which coverages you want and don't want.
• With this build your own policy structure, coverage "A" (physical damage property on the dwelling itself) is the only required coverage. The other coverages are all optional. You get to pick and choose whether you want that coverage or not. That way, you're not paying extra in premium for coverage you don't need or want like you do with many packaged policies.

"Build your own policy": optional coverages include:

• coverage for vandalism
• coverage for premises liability
• coverage for personal property
• coverage for other structures
• medical payments coverage.
• Simply decide whether not you want these coverages and then add those to your policy accordingly.

 Other policy features:

• You will find coverage options that offer higher limits on this policy then you will see on most any other policy.
• You can insure as many properties as you want on one policy.
• It is very easy to make changes on this policy when circumstances change (for example buying or selling a property or renting out a property that was previously vacant).
• There is no penalty for early cancellations. This is especially important for landlords who are definitely planning on selling the property.

Summary:


     If this sounds like the type of policy that you need to insure your property, feel free to fill out a quote form below, and I will be happy to help you try to solve your problem. And as always, I handle all quotes personally and privately.




Get a Vacant Rental Property Quote