Most landlords such as yourself usually have some sort of landlord insurance set up to protect a rental unit or property from certain damages or conditions. However, when the unit is vacated by the last tenant and you are left to try to fill the vacancy, you might need a different type of insurance to cover the unoccupied property. A vacancy insurance can help you effectively cover properties such as rental and vacation houses. Learn more about how vacancy insurance can benefit you.
Advantages of Vacancy Insurance
Even though most property owners use landlord insurance, which essentially functions as the equivalent of home owner’s insurance for rental properties, it has certain limits the moment the property is vacated, particularly for houses and single-unit properties. Vacancy insurance coverage provides some advantages.
· Affordability. While landlord insurance can usually provide full-blown coverage when the property is occupied, it has its limitations once it becomes vacant. Vacancy insurance provides protection not covered or denied by landlord insurance, and it does so at a more affordable price, making it a great investment.
· Coverage for Crimes. Once your rental home is vacant, it is more vulnerable to certain risk factors, such as break-ins, vandalism, and other mischief. Vacancy insurance covers all these scenarios. In addition, if an intruder is injured while in the property, you might be held liable for the injury. Vacancy insurance also grants you protection for this scenario.
· Coverage for Greater Risks. Because your home will have no tenants in it, it might run a greater risk with other conditions and disasters that could be mitigated with the presence of tenants, such as fires, natural disasters, and other hazards. While considered too risky for other insurance plans, these risks are covered by vacancy insurance.
Flexibility Between Coverages
Perhaps the best part about vacancy insurance is that you do not necessarily have to choose between a landlord insurance and a vacancy plan. Depending on how flexible your insurance plan is, if you find a tenant for the rental unit, it can switch to a landlord insurance. The opposite is true if the rental home is left unoccupied. If you have a flexible insurance program, you can enjoy the best of both worlds and fully protect your investment, no matter the occupancy status.
Are you considering getting vacancy insurance for your unoccupied rental properties? Home365’s OneRate Pricing plan, which provides full coverage for property-specific management services at one flat rate, includes vacancy insurance. Contact us today to learn more about this offer.